Who Wins the Battle Between Humans and AI? Investors Like You

Michael Robinson

Friday, August 25, 2023

In the blockbuster film "Top Gun: Maverick," Tom Cruise's character sets out to prove that he's the world's best fighter pilot...

Even better than a plane piloted by Artificial Intelligence ("AI").

Cruise comes out on top in the movie. But make no mistake: A human besting today's AI capabilities is much closer to Hollywood than reality. In fact, the day that AI takes over for human fighter pilots is coming faster than most investors (or screen writers) realize...

Meaning our best opportunities to invest in this AI achievement will be gone before we know it.

A Great Opportunity — With a Catch

One opportunity some investors took advantage of was a bit untraditional...

They invested in a fast-growing startup called Shield AI.

This company is at the forefront of using autonomous AI technology to transform how the U.S. military fields its aircraft. And this technology could be a game-changer, with the potential to enhance America's air superiority over the rest of the world.

Shield AI has collected a slew of defense contracts, including a $60 million deal with the Air Force awarded earlier this year. On the strength of those contracts, the startup is currently valued at more than $2.3 billion.

There's just one hiccup when it comes to investing in Shield AI. Because it's a privately-held startup, most investors — including ordinary investors like us — can't invest in it! (But don't worry: I promise I won't leave you empty handed today.)

So, why am I telling you about a startup you can’t invest in? Because I believe the technology powering this company has enormous potential in the massive aerospace industry. Let me explain...

The 'Brains' Behind Shield AI

You see, the "brains" behind Shield AI's technology is a platform known as Hivemind. Similar to a human pilot, Hivemind reads and reacts to the battlefield. Furthermore, it doesn't require GPS for guidance or onboard communications to make decisions.

That latter attribute may be more significant than it sounds. With AI in the pilot's seat, a jet doesn't need conventional navigation systems.

Instead, it relies on sensors to create a map of its surroundings and targets. The computer then tells the AI where to go and what to do to execute its mission.

The result is a Hivemind-powered aircraft that is significantly more difficult for an enemy to spot and track. It also means the enemy can't jam the aircraft's radar system and keep it from locking onto a target.

This all sounds great on paper. But how good is the actual technology?

AI is Undefeated

The U.S. Pentagon can answer that question. As it turns out, the U.S. Defense Department has been using Hivemind in various combat jets and drones since 2018.

In fact, three years ago, Hivemind was equipped in an F-16 fighter jet and put to the test against a human pilot ("Top Gun: Maverick" style).

The Hivemind-equipped jet didn't just win, it demolished the human-led aircraft. In five mock combat rounds, the AI tallied a 5-0 record — impressive.

Granted, this was only a simulation. But it proved that AI can outfox, outmaneuver, and outperform human pilots, at least for now.

It All Started with a SEAL

Shield AI got its start thanks to Brandon Tseng, a former Navy SEAL who fought in Afghanistan.

As he thought about the dangers his fellow soldiers faced in combat, Tseng thought there had to be a way to increase lethality and solider safety at the same time.

In a move that now seems rather prescient, Tseng thought AI could be used in place of human operators for combat aircraft. And he began to create a vision for an AI-powered fighting force.

Eventually, he aimed to have AI power every military aircraft, drone, ship, satellite, and even submarine.

It turns out, along with military experience, Tseng has plenty of business savvy, too. He earned an MBA from Harvard and spent time early in his career negotiating deals as a Pentagon contractor.

In July 2021, Shield AI scooped up Heron Systems, a company that created the software for Tseng's AI pilot — the one featured in the F-16 combat simulation tests.

Now Shield AI is taking home big-time awards and attracting the attention of prominent defense companies. For example...

From Nature to the Battlefield

In July 2022, the company was part of a $950 million award for its "V-Bat," an autonomous drone that can take off and land vertically.

And earlier this year, Shield AI committed to working with Boeing (BA), a $130 billion aerospace giant that has its hooks in aviation, defense, and even the upcoming "space race." The two businesses will be part of a $342 million public/private effort to develop next-generation AI flight solutions...

Including an AI-piloted swarm of drones!

This idea actually comes from nature. Picture a flock of birds in flight or a school of fish cutting through the water.

These groups operate off the movement of one animal. But there's also a factor known as decentralized control. Essentially, this means that if the lead animal dies, another takes its place seamlessly.

Just imagine this benefit as it relates to a gaggle of AI-powered drones. If one is damaged or shot out of the sky, another could easily take its place, enabling the mission to continue, and keeping human lives safe.

Don't Miss This 'Backdoor' Opportunity

As you can see, Shield AI is already making an impact in industries like aerospace and defense. And its technology could shape the way our planes, drones, and soldiers operate in the battlefield.

As I mentioned, though, this company isn't publicly-traded. So unless you're a venture capitalist or have access to major private-equity deals, there's no way to invest in it.

That's ok, though. Because I've discovered a "backdoor" way to invest in Shield AI...

A way to capture the potential windfalls that could result from customers continuing to use its Hivemind technology.

Curious about the details? They're only available for my "Pro" readers, so don't miss out!



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Cheers and Good Investing,

Chief Investment Officer
Trend Trader Daily

Tags: aerospace ai