San Diego-based defense technology startup Shield AI has raised an impressive $500 million in its Series F funding round. The additional funds include $100 million in equity and $200 million in debt from Hercules Capital, in addition to the $200 million in equity closed in November. Shield AI’s focus on AI pilots is gaining traction as a strategic conventional deterrent in warfare. These AI pilots solve the problem of electronic warfare, particularly in the ongoing Russia-Ukraine War, where drones are being jammed and destroyed at an alarming rate. By using AI pilots, missions that were traditionally reserved for expensive human-piloted aircraft can now be accomplished by swarms of affordable autonomous aircraft.
Shield AI’s flagship product, Hivemind, is an AI pilot that enables autonomous operations in high-threat environments. The company claims that Hivemind has logged more autonomous flight hours executing fighter jet maneuvers than any other competitor. Shield AI believes that AI pilots will have a transformative impact on national security and global stability.
The company operates from offices in San Diego, Dallas, Washington, D.C., and overseas. This latest funding round demonstrates the growing interest from the defense and investment communities in the potential of AI pilots.
In other news, San Diego is among the counties in the nation where home purchases have become unaffordable. A recent affordability report from real estate sales data cruncher Attom revealed that median-priced homes in San Diego and other counties around the country remain less affordable compared to historical averages. The report also highlighted that major expenses on these homes consume a significant portion of the average national wage.
However, efforts are underway to bridge the gap in homeownership. San Diego-based home mortgage lender Guild Mortgage has announced the completion and listing for sale of the first two homes under its Making Paradise Home Initiative. These manufactured homes, located in Paradise, CA, were built to educate residents about the benefits of manufactured housing and contribute to the community’s reconstruction after being devastated by a wildfire. With unique financing options and as little as a 3% down payment, Guild Mortgage aims to make homeownership more accessible.
Douglas Wilson Cos., a San Diego-based company specializing in business workouts, has been appointed as the assignee in the wind-down and liquidation of Seattle-based online retailer Zulily. After announcing layoffs, Zulily has made the decision to shut down operations.
Sempra, a San Diego energy supplier, has been recognized for the fifth time in a row as one of The Wall Street Journal and Drucker Institute’s 250 Best Managed Companies. The company ranked first in employee engagement among its peer group, reflecting its high-performance culture that fosters innovation and operational excellence.
San Diego’s troubled biotech company Illumina is aggressively cutting costs, including the early termination of its lease on a major office complex and implementing layoffs. The company aims to save $100 million a year and is considering downsizing office space in its Northern California location. This cost-cutting effort aligns with a broader trend in the biotech industry, as highlighted by a 2023 survey from the San Diego Association of Governments.
Juice It Up!, a leading handcrafted smoothie and superfruit bowl chain, has opened its first store in San Marcos as part of its expansion into the San Diego region. The company plans to open six more stores and aims to have a total of 200 units open by 2027.
Overall, San Diego is experiencing developments in defense technology, real estate, energy, and biotech. These advancements are shaping the city’s economic landscape and reflecting its ambition for growth and innovation.
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