# Shield AI X-BAT Navy OT Modification In early October 2026, the [[United States Navy]] added **$150 million** to [[Shield AI]]'s Other Transaction (OT) agreement for the X-BAT, the company's vertical-takeoff uncrewed fighter, and Shield AI matched it with **$150 million** of its own capital. Naval News reported the funding on October 8, 2026; the date of the award action itself has not been published. ## Deal Mechanics - **Vehicle:** a modification to an existing OT agreement, not a new FAR-based contract. - **Government funds:** $150M, routed through the Under Secretary of War for Acquisition and Sustainment's Defense Exportability Features program. Whether the full amount is obligated is not stated. - **Company funds:** $150M of Shield AI capital alongside it. - **Earlier action:** in August 2026, the Navy's PAE(A) Rapid Capabilities office and the [[Defense Innovation Unit]] announced a $50M funding action for X-BAT, matched by $50M of Shield AI money. Combined commitments to the program now total about **$400M**. - **Schedule:** Shield AI says it expects X-BAT to fly within months. ## Significance X-BAT is Shield AI's bid to move from software and small drones into a fighter-class aircraft, as [[Anduril]] did with the Fury on the Air Force's [[Collaborative Combat Aircraft]] program. The deal is structured like Anduril's recent awards: the government and the company split development costs, and the company's investors carry much of the risk. Shield AI's March 2026 Series G, led by [[Advent International]], is the capital behind the company's half. ## See Also - [[Shield AI]] - [[Shield AI Air Force CCA Production Contract]] - [[Brandon Tseng]] - [[United States Navy]] - [[Defense Innovation Unit]]