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Pentagon Makes Deal With Shield AI For Cheap Drone Program Amid Iran War

Author: admin_zeelivenews

Published: 19-05-2026, 8:28 PM
Pentagon Makes Deal With Shield AI For Cheap Drone Program Amid Iran War
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The Pentagon has tapped Shield AI to integrate its software into a new one-way attack drone program designed to give U.S. forces cheaper weapons in larger numbers as the Iran war and other modern conflicts accelerate demand for unmanned systems.

The contract, announced by Shield AI, places the San Diego-based defense technology company at the center of a Pentagon pilot program to field drone swarms. Shield AI said its Hivemind software will act as the “AI pilot” for the Low-Cost Uncrewed Combat Attack System, known as LUCAS, allowing groups of drones to coordinate, maneuver, and adapt together in real time based on input from U.S. service members.

LUCAS is reportedly reverse-engineered from Iran’s Shahed-136, the low-cost exploding drone that has been used by Russia in Ukraine. The U.S. version is about 10 feet long, carries an explosive payload, and costs roughly $35,000, far less than many traditional precision-guided weapons.

In the announcement, Brandon Tseng, president and co-founder of Shield AI, said “LUCAS is about delivering affordable mass, but mass without coordination is limited in value. Hivemind is the AI pilot that makes the mass intelligent. It’s the autonomy layer that enables teams of drones to sense, decide, and act at scale. We’re proud to partner with OUSW R&E to put this capability in the hands of the warfighter at the speed of relevance.”

Reuters reported that the Pentagon is ramping up requests to Congress for munitions funding because weapons are in high demand amid the war, with the fiscal 2027 budget set to include more than $26 billion for multiyear procurement contracts for critical munitions.

The effort comes as Defense Secretary Pete Hegseth’s “Drone Dominance” push and the Defense Autonomous Warfare Group, or DAWG, seek to accelerate drone and autonomy development. The Pentagon has outlined nearly $55 billion in fiscal 2027 spending on drone and autonomy programs under the DAWG umbrella.

Reuters reported last week that the Defense Department also struck agreements with Anduril, CoAspire, Leidos, and Zone 5 for the Low-Cost Containerized Munitions program, which could eventually support the purchase of more than 10,000 low-cost missiles over three years starting in 2027.

The Shield AI program is still a pilot, and key details remain unclear, including the contract value, timetable, and whether other companies are participating. But Shield AI said it expects to take part in an operational demonstration of the swarm capability this fall. Shield AI said the system would allow drone teams to operate in “dynamic, communications-constrained environments under the supervision of a single operator.”

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