Trump’s son invests $1.5 billion into merger with Israeli drone producer

Eric Trump, the middle son of US President Donald Trump, is behind a pool of investors injecting funds into a $1.5 billion merger between Israeli drone manufacturer XTEND with Florida-based construction firm JFB.

The transaction is expected to create a US market leader in AI-powered autonomous robotic systems. Following completion of the deal, the combined company will remain listed on the Nasdaq under the name “XTEND AI Robotics,” trading with the new ticker symbol “XTND”, as Israeli outlets report.

Besides Trump, the merger is backed by a group of strategic investors, including Israel’s Protego Ventures; Florida-based dronemaker Unusual Machines; Texas real estate development firm American Ventures, LLC; and Miami-based Aliya Capital. 

XTEND is known for its XTEND Operating System (XOS), a software platform that enables operators to remotely control multiple drones and robotic systems — in the air, on land and at sea — during complex missions. The company describes the system as battle-proven and designed to keep soldiers and first responders out of harm’s way.

The firm markets its drones as “low cost per kill,” an approach that has drawn interest from the United States Department of Defense. In November, XTEND announced it had secured a multimillion-dollar contract with the Pentagon, though the value was not disclosed. The company also signed an $8.8 million contract with the Defence Department in December 2024, prior to Trump’s second term.

XTEND’s human-guided drone operating system was initially developed to help the Israeli military intercept incendiary balloons launched from Gaza, according to Israeli media reports. Its systems are designed for high-risk operations such as scanning tunnels and buildings for militants and explosives. During the war with Hamas in Gaza, hundreds of XTEND systems — including small drones operated via portable virtual reality headsets and gesture-based controllers — were deployed by the Israel Defence Forces. Before the Gaza conflict, the US Department of Defense was the company’s largest client.

This month, XTEND was among 25 companies selected for the US Defence Department’s Drone Dominance Program, an initiative aimed at accelerating the deployment of affordable attack drones at scale.

“I am incredibly proud to invest in companies I believe in. Drones are clearly the wave of the future. Xtend has unbelievable potential,” Eric Trump said in a statement.

The merger with JFB is intended to provide XTEND with the infrastructure and capital needed to expand manufacturing in the United States. The joint company will operate from Tampa, Florida, where production capacity will be scaled up to meet stringent US defense compliance standards, including National Defense Authorization Act (NDAA) requirements.

"Demand for systems that keep operators out of harm's way is increasing as the global security environment becomes more volatile," said Aviv Shapira, CEO and co-founder of XTEND. "By joining forces with JFB, we gain the resources to scale our manufacturing in the U.S. and gain access to the public capital markets."

Joseph F. Basile III, CEO of JFB, added: "XOS is not just a product, but a core autonomy platform that integrates software and hardware. We see a clear opportunity to support a next-generation defense platform that is 'Made in America.'"

Upon completion of the transaction, expected in mid-2026, XTEND’s current shareholders will hold 70 percent of the combined company, while JFB shareholders will own the remaining 30 percent. The company says its technology is aimed at strengthening not only US security but also that of NATO allies and partners in Asia.

By Nazrin Sadigova