The battlefield of tomorrow is being forged today, not by traditional fighter jets or human pilots, but by autonomous systems driven by artificial intelligence. This profound transformation in defense strategy and technology was at the heart of a recent CNBC segment, which offered an exclusive look at Shield AI’s XBAT, an autonomous fighter jet powered by the company’s Hivemind AI system. CNBC's Ryan Baker spoke with Shield AI CEO Gary Steele and Co-Founder and President Brandon Tseng at Shield AI's facilities in Frisco, Texas, and San Diego, California, to explore the company's latest product and its profound implications for the future of defense.
Shield AI, founded in 2015, has steadily built its expertise in drone development, starting with quadcopters and evolving to the V-BAT, an intelligence and surveillance drone with vertical take-off and landing (VTOL) capabilities. The V-BAT has already secured a nearly $200 million contract with the U.S. Coast Guard. Building on this foundation, the XBAT represents a significant leap forward, designed as a combat-ready autonomous fighter jet that eliminates the need for a human pilot. Gary Steele describes the XBAT as "a next-generation warfighter. It has capabilities to fly long distances, carry munitions, be fully autonomous, and be anywhere that defense needs it."
The XBAT’s development timeline is aggressive, with subsystem flights slated for 2026, full system flights in 2027, and production by 2029. This rapid pace is supported by extensive testing, including engine tests, radar cross-section evaluations, and crucial wind tunnel experiments. As John Davis, Shield AI’s Aerodynamics and Performance Lead, explains, "Simulations are only so good. There's still no substitute for testing." Utilizing scaled models in a controlled environment allows for critical adjustments before full-scale manufacturing, a cost-effective approach that minimizes expensive changes later in the development cycle.
The economic argument for autonomous aircraft is compelling. An XBAT costs a fraction of a manned fighter jet. Shield AI estimates the XBAT will cost approximately $27 million per unit, a stark contrast to the $80-100 million price tag of modern military fighter jets like the F-35, which also demands an additional $10.2 million to train a single pilot. This substantial cost reduction, coupled with the elimination of human pilot training expenses, presents a compelling value proposition for defense budgets facing increasing pressure. The ability to deploy advanced combat capabilities without risking human lives or incurring the immense costs associated with pilot recruitment and retention is a game-changer.
Furthermore, the XBAT’s design offers unprecedented operational flexibility. Its VTOL capability liberates it from the constraints of traditional runways, allowing deployment from diverse locations, including small ships, cargo vessels, or even unprepared airfields. Brandon Tseng emphasizes this by stating, "The number one benefit of being able to take off vertically is that you are no longer constrained by a runway." This adaptability is critical in contested environments where fixed infrastructure is vulnerable. The U.S. Air Force, already grappling with a pilot shortage, stands to benefit immensely from such autonomous platforms, which can augment existing manned fleets and reduce the operational burden on human personnel.
A core technological differentiator for Shield AI is its Hivemind AI system, which enables aircraft to operate effectively even in environments devoid of GPS or traditional communication links. This capability is vital in modern warfare, where adversaries actively employ jamming tactics to disrupt autonomous systems. Gary Steele highlights this, stating, "Our focus is leveraging AI capabilities to ensure that we deliver great mission outcomes for our customers, and in the AI context, it's being able to operate in contested environments, meaning no GPS." The V-BAT's successful deployment in Ukraine, conducting hundreds of reconnaissance, intelligence, surveillance, and targeting operations despite GPS jamming, serves as a powerful testament to Hivemind's robustness.
The global landscape of drone warfare is rapidly evolving, with significant geopolitical implications. The U.S. government, through initiatives like the "Unleashing American Drone Dominance" executive order and substantial funding allocations in defense bills, is actively pushing for the commercialization and integration of drone technologies. However, the video also points to a critical challenge: the dominance of China in the drone component supply chain. Oleksandra Molloy, a Senior Lecturer in Aviation, notes that "who actually wins from this drone arm race is China, because both Ukraine and Russia are using Chinese components still to some extent." This reliance presents a strategic vulnerability that the U.S. industrial base must address to ensure true drone dominance.
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The prospect of AI-powered autonomous weapons systems inevitably raises ethical concerns, often dubbed the "Oppenheimer moment" of AI. Critics voice fears about machines making life-or-death decisions without human oversight. Shield AI, however, maintains a firm stance on ethical deployment. Brandon Tseng, drawing from his experience as a former Navy SEAL, clarifies the company's position: "I don't believe that autonomous systems should be making any moral decisions about the use of lethal force. Shield AI does not believe that. That is U.S. military policy, that is NATO policy." This commitment to a "human in the loop" ensures that moral responsibility remains with human operators, mitigating concerns about rogue AI.
Despite its innovative edge, Shield AI has faced challenges. A 2024 incident involving a V-BAT that resulted in a service member's partial finger amputation and subsequent reports by Forbes of overlooked safety issues led to a "loss of confidence from customers." Gary Steele acknowledges these setbacks, affirming that the company has "been very much focused on safety and building safety into the culture of the company." He asserts that Shield AI has made a "phenomenal job of recovering" and is actively rebuilding momentum, demonstrating resilience in the face of adversity. The company, a CNBC Disruptor 50 honoree, continues to invest heavily in R&D, aiming for its XBAT to achieve the ubiquity and effectiveness of "this generation's F-16."
