(Bloomberg) -- Boeing Co. and Shield AI Inc. have agreed to work together to accelerate the military use of the startup’s autonomous aircraft software and explore other defense applications for the artificial-intelligence technology.

Most Read from Bloomberg

• Meta Plans Thousands More Layoffs as Soon as This Week

• Your Next Holiday Flight Will Cost a Fortune

• Biden to Urge 25% Billionaire Tax, Levies on Rich Investors

• It Turns Out Money Does Buy Happiness, At Least Up to $500,000

• Deepest Bond Yield Inversion Since Volcker Suggests Hard Landing

Shield AI’s hallmark software is Hivemind, a self-driving AI pilot for aircraft that doesn’t require GPS or other communications, ideal in military zones where enemy forces can jam navigation systems. Hivemind has been deployed in combat jets and drones since 2018.

“The government understands the critical nature of AI pilots, but legacy policies have made it difficult to procure this complex software for their aviation programs,” said Ryan Tseng, Shield AI’s chief executive officer and co-founder. “Shield AI and Boeing have the capacity to meet the government where it is.”

The agreement, announced Wednesday, will be managed by Boeing Phantom Works, which oversees prototype developments for the aerospace company’s defense and security projects, according to a statement.

San Diego-based Shield AI was founded in 2015 by Tseng, his brother, Brandon, a former Navy SEAL who serves as president, and Andrew Reiter. It has received several US Air Force contracts, including a $60 million deal last February to install Hivemind in a range of aircraft. Shield AI is currently valued at $2.3 billion, Tseng said.

Venture capital investment in defense startups valued at more than $1 billion, such as Shield AI, Anduril Industries Inc. and HawkEye 360, rose to a record $1.9 billion last year, as the US seeks to develop new technologies to meet military challenges. The Department of Defense’s Office of Strategic Capital, unveiled in December, has made it a priority to improve the government’s relationship with the venture community and help the Pentagon buy software products.

Most Read from Bloomberg Businessweek

• Health-Care Oversight Rule Changes Create Legal Risk for US Employers

• Business Schools Soften Admissions Requirements to Scoop Up Laid-Off Tech Workers

• Google’s Plan to Catch ChatGPT Is to Stuff AI Into Everything

• The Real Life Consequences of Silicon Valley’s AI Obsession

• The Debt Ceiling Is the Risk Wall Street Doesn’t Want to Think About

©2023 Bloomberg L.P.