GE Aerospace's $1.42B Volume Propels 68th Rank on AI-Powered Defense Pact with Shield AI

Market Snapshot

GE Aerospace (GE) closed 2025’s trading session with a modest gain of 0.30%, reflecting a slight upward trend in investor sentiment. The stock’s trading volume reached $1.42 billion, securing its position as the 68th most actively traded equity in the market. While the percentage change was relatively small, the volume suggests sustained interest in the stock, potentially linked to recent strategic announcements. This performance aligns with broader market dynamics, where defense and aerospace sectors often attract attention during periods of geopolitical uncertainty or technological advancements.

Key Drivers

The primary catalyst behind GE Aerospace’s recent activity is its collaboration with Shield AI to integrate propulsion systems into the X-BAT program. Under a Memorandum of Understanding (MOU), GE Aerospace will supply its F110-GE-129 engine, equipped with the Axisymmetric Vectoring Exhaust Nozzle (AVEN), to power Shield AI’s AI-piloted vertical take-off and landing (VTOL) fighter jet. The F110-GE-129, with over 11 million flight hours and four decades of production history, represents a proven and high-thrust solution for the X-BAT’s demanding operational requirements. This partnership underscores GE Aerospace’s commitment to advancing propulsion technologies for next-generation autonomous systems, a strategic pivot that could position the company at the forefront of the defense aerospace sector.

The X-BAT itself is a novel platform designed for contested environments, leveraging Shield AI’s Hivemind autonomy software to enable independent or wingman operations. By pairing GE Aerospace’s propulsion expertise with Shield AI’s autonomous technology, the collaboration aims to accelerate the development of unmanned systems. Amy Gowder, president and CEO of Defense & Systems at GE Aerospace, emphasized the synergy between the two companies, noting that the partnership redefines how propulsion is integrated into autonomous aircraft. The selection of the F110-GE-129, known for its reliability and operability, signals confidence in the engine’s adaptability to unconventional airframes like the X-BAT.

A critical technical component of this collaboration is the AVEN nozzle, which provides thrust vectoring for vertical flight and enhanced maneuverability in horizontal flight. This innovation addresses the unique challenges of VTOL design, where traditional propulsion systems often fall short. The AVEN’s inclusion highlights GE Aerospace’s focus on adapting legacy technologies to emerging platforms, ensuring compatibility with advanced autonomous systems. Armor Harris, senior vice president of aircraft engineering at Shield AI, praised the F110’s historical success and its alignment with the X-BAT’s operational demands, reinforcing the strategic value of the partnership.

The broader implications of this collaboration extend beyond the X-BAT program. As demand for affordable, reliable propulsion solutions grows across both manned and unmanned defense applications, GE Aerospace’s portfolio of partnerships positions it to capitalize on this trend. The company’s extensive experience in propulsion development, testing, and certification provides a competitive edge in a market increasingly driven by autonomous systems. By aligning with Shield AI, GE Aerospace not only strengthens its role in the defense sector but also signals its readiness to address future challenges in aerospace innovation.

The partnership also reflects a broader industry shift toward integrating mature technologies with cutting-edge applications. The F110-GE-129, despite its long history, remains a relevant asset through modifications like the AVEN nozzle. This approach minimizes development risks while leveraging existing infrastructure, a strategy that resonates with defense contractors seeking cost-effective solutions. For GE Aerospace, the collaboration reinforces its reputation as a leader in propulsion systems, bridging the gap between traditional aerospace engineering and the rapidly evolving autonomous systems landscape.

Finally, the announcement aligns with GE Aerospace’s long-term vision to shape the future of flight through strategic alliances. By focusing on partnerships that combine its propulsion expertise with innovative technologies, the company is positioning itself to meet the evolving needs of the defense market. The X-BAT program, with its emphasis on scalability and survivability, represents a tangible step toward this goal. As the partnership progresses through testing and certification phases, key milestones—such as ground trials or flight demonstrations—will likely influence investor perceptions and stock performance. For now, the collaboration has already generated sufficient momentum to drive short-term interest in GE Aerospace’s equity.