Investing.com– Palantir Technologies Inc (NASDAQ:PLTR) is in discussions to invest in Shield AI, as the drone startup was set to nearly double its valuation to $5 billion in a new fundraising round, The Information reported on Friday citing sources.
This potential investment aligns with Palantir’s strategic focus on enhancing its artificial intelligence (AI) capabilities within the defense sector.
The San Diego-based startup, which develops AI-driven software for autonomous drones and aircraft, is in the process of raising approximately $200 million. The funding is expected to come from defense and aerospace firms, including Palantir, Airbus Group SE (EPA:AIR), and L3Harris Technologies Inc (NYSE:LHX), Financial Times reported on Friday citing sources familiar with the matter.
Venture capital firms such as Andreessen Horowitz, Point72, and Riot Ventures are also anticipated to take part, the FT report noted.
As of now, Palantir has not publicly commented on these discussions, and further details about the potential investment remain undisclosed, the reports stated.