Shield AI, a San Diego-based defense technology startup that specializes in developing drones and AI-powered military systems, has secured a $240 million funding round, valuing the company at $5.3 billion, as announced today.

According to Shield AI, its Hivemind software has already enabled autonomous flight capabilities for fighter jets and drones. The company now aims to expand its customer base by offering Hivemind to a wider range of clients, including robotics companies.

The funding round was supported by prominent investors, including L3Harris, a leading US defense contractor, and Hanwha Aerospace. Additionally, existing investors such as Andreessen Horowitz also participated in the round.

With this valuation, Shield AI becomes the second-largest US-based defense tech startup, surpassing others except for Anduril, which is reportedly raising funds at a $28 billion valuation.

The field of autonomy is gaining significant attention in the defense sector, as evident from the recent funding round of autonomous warship startup Saronic, which quadrupled its valuation to $4 billion in a $600 million round last month.

Shield AI has not responded to a request for comment at this time.