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Shield AI achieves multi-jet autonomous flight milestone

Published 08/21/2024, 03:07 PM
KTOS
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SAN DIEGO - Shield AI, a technology firm specializing in artificial intelligence for unmanned systems, has successfully completed a landmark flight test involving two Kratos MQM-178 Firejet aircraft. The company's 'Hivemind' AI pilot demonstrated its ability to autonomously control multiple jets, performing collaborative maneuvers indicative of future unmanned military operations.

During the recent tests, the two AI-driven agents executed coordinated actions, showcasing the potential for unmanned jets and drones to operate with autonomy in combat scenarios. The AI pilots carried out all computational tasks onboard, without human intervention, and communicated with each other mid-flight, a significant step forward in autonomous aviation technology.

Brandon Tseng, President and Co-founder of Shield AI, and a former Navy SEAL, emphasized the scalability of the technology, stating, "AI pilots will command and maneuver all unmanned systems, enabling the US and our allies to deploy millions of intelligent, resilient drones." He further explained that the algorithms could manage more aircraft if required, but the test was limited to two jets for practical and budgetary reasons.

This achievement builds on Shield AI's previous successes, including multiple AI-piloted Firejet flights earlier this year, marking the sixth type of aircraft flown by the Hivemind AI Pilot. In June, Shield AI also completed its first Live Virtual Constructive (LVC) integration, allowing for interaction between live platforms and virtual environments across different domains.

Founded in 2015, Shield AI has been developing AI technologies to enhance the safety of service members and civilians. The company's AI pilot, Hivemind, has been tested on various platforms, including jets, vertical takeoff and landing drones, and quadcopters. Shield AI operates out of offices in San Diego, Dallas, Washington DC, and abroad, actively supporting operations with the U.S. Department of Defense and allied nations.

Kratos Defense (NASDAQ:KTOS) & Security Solutions, Inc. (NASDAQ:KTOS), the manufacturer of the MQM-178 Firejet, is a technology company serving the defense, national security, and commercial sectors. Kratos is known for its innovative and cost-effective solutions in unmanned systems, satellite technologies, and training systems for the warfighter.

This announcement is based on a press release statement from Shield AI.

In other recent news, Kratos Defense & Security Solutions has reported strong Q2 2024 financial results, surpassing estimates with revenues of $300.1 million and an adjusted EBITDA of $29.9 million. The company's diverse portfolio, including the Erinyes hypersonic glide vehicle and Zeus solid rocket motors, has contributed to this success. Despite challenges in personnel recruitment and satellite business segments, Kratos is confident in maintaining a 10% year-over-year organic growth rate and capitalizing on a $12 billion opportunity pipeline.

The company is expanding its drone manufacturing capabilities and investing in new launch capabilities for the Valkyrie system. Despite setbacks in the commercial satellite sector, Kratos foresees future growth opportunities. The company is actively participating in global defense budget increases and is focused on vertical integration to mitigate supply chain risks.

Kratos maintains confidence in meeting the financial guidance for 2024 and has expansion plans in Oklahoma for drone manufacturing and engine production. While there have been technical difficulties in the commercial satellite business and challenges in personnel recruitment, the company sees increased demand for its target drone business and positive prospects for training systems and cybersecurity businesses. These are recent developments in the company's ongoing operations.

InvestingPro Insights

The successful deployment of Shield AI's 'Hivemind' technology in Kratos MQM-178 Firejet aircraft underscores the growing significance of unmanned systems in defense operations. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), the producer of these unmanned jets, is at the forefront of this transformative sector. As the market evaluates Kratos' role in this burgeoning field, several financial metrics and expert insights from InvestingPro provide a deeper understanding of the company's current standing.

InvestingPro data highlights a robust revenue growth for Kratos, with a notable 16.46% increase in revenue over the last twelve months as of Q2 2024. This growth is indicative of the company's expanding footprint in the defense technology market. Additionally, Kratos has demonstrated a significant EBITDA growth of 93.08% over the same period, reflecting its operational efficiency and potential for reinvestment in further innovation.

The company's market capitalization stands at $3.16 billion, and while it trades at a high earnings multiple with a P/E ratio of 290.83, this may reflect investor confidence in its future earnings potential. An InvestingPro Tip points out that Kratos holds more cash than debt on its balance sheet, which suggests a stable financial position to weather economic fluctuations and invest in new projects. Moreover, analysts predict that Kratos will be profitable this year, a sentiment that could bolster investor optimism.

For investors seeking a comprehensive analysis, InvestingPro offers additional insights, with a total of 9 InvestingPro Tips available for Kratos at https://www.investing.com/pro/KTOS. These tips include evaluations of the company's valuation multiples, profitability, and analysts' earnings revisions, which can guide investment decisions in the context of the company's strategic involvements such as the partnership with Shield AI.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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