Eric Trump Backs Low Cost Per Kill Drone Deal

Israeli drone maker XTEND is heading to the public markets through a $1.5 billion reverse merger with Florida based JFB Construction Holdings, a Nasdaq listed contractor whose core business until now has had little to do with defense robotics, as Bloomberg reports.

The combined company will rebrand as XTEND AI Robotics and trade under the ticker XTND. The transaction is expected to close in mid 2026. Under the deal structure, XTEND shareholders will own 70 percent of the merged entity, while JFB shareholders will retain 30 percent.

Strategic investment commitments total $152 million. Among the backers is Eric Trump, alongside Israel based Protego Ventures, Texas real estate firm American Ventures, and Miami based Aliya Capital.

For XTEND, the logic is straightforward. A reverse merger offers faster access to U.S. public markets, deeper pools of capital, and the ability to scale domestic manufacturing at a time when Washington is pushing for onshore drone production. For JFB, the transaction represents a dramatic pivot from construction projects to AI powered autonomous systems.

Markets reacted quickly. JFB shares had previously surged following private placement activity, only to fall sharply after the merger announcement, highlighting the volatility that often follows defense tech plays tied to political headlines.

Trump Family Expands Into Defense Tech

The involvement of Eric Trump places the Trump family closer to one of the fastest growing segments in the Pentagon’s procurement pipeline: low cost, scalable combat drones.

The deal also includes investment from Unusual Machines, a separate drone firm that brought on Donald Trump Jr. as an adviser in November 2024. That creates a visible link between members of the president’s family and companies competing for U.S. defense contracts.

Since Donald Trump returned to the White House, the Trump family has expanded into several industries that intersect with federal oversight and regulation, including cryptocurrency, advanced manufacturing, and now defense robotics. Reports indicate that crypto ventures tied to the family generated roughly $800 million in the first half of 2025 alone.

Critics argue that such proximity to federal procurement priorities raises conflict of interest concerns. The White House and the Trump Organization have denied wrongdoing and maintain that all activities comply with applicable laws.

Regardless of the political debate, the strategic timing is hard to ignore. The Pentagon is accelerating spending on autonomous systems, particularly drones that can be deployed at scale without the cost profile of traditional military hardware.

XTEND’s AI Systems And “Low Cost Per Kill” Strategy

XTEND develops AI powered drone systems that run on its proprietary XOS operating system. The company describes its platform as enabling human guided autonomous control, allowing a remote operator to supervise and direct drones operating in complex indoor or urban environments.

In practical terms, that means small teams can deploy drones to map buildings, inspect tunnels, identify threats, and conduct strike missions without placing soldiers directly in harm’s way.

Bloomberg reported that XTEND markets some of its systems using the phrase “low cost per kill.” That language reflects a broader shift in military doctrine. Modern warfare is increasingly defined by attritable systems, platforms that are inexpensive enough to be used aggressively and, if necessary, lost without strategic shock.

The U.S. Department of Defense has already awarded XTEND multimillion dollar contracts. The company is also participating in the Pentagon’s Drone Dominance Program, an initiative designed to fast track low cost, scalable drone solutions. The broader program is expected to reach up to $1.1 billion in procurement value.

XTEND systems are currently deployed with U.S. forces as well as allied militaries in Europe, the United Kingdom, Singapore, and Israel. Following the October 7, 2023 attacks carried out by Hamas and the subsequent conflict in Gaza, XTEND stated that its drones were used to map terrain, navigate inside buildings, and assist in neutralizing threats in underground tunnel networks.

Drones have become central to modern battlefields, from Ukraine to the Middle East. They are used for surveillance, logistics, electronic warfare, and direct strike operations. The cost equation is changing as well. Instead of relying solely on multimillion dollar aircraft and missiles, militaries are increasingly deploying swarms of smaller, cheaper systems that can overwhelm defenses through volume and persistence.

XTEND’s positioning fits squarely within that doctrine. By emphasizing software driven autonomy and scalable hardware, the company aims to become a supplier not of niche equipment, but of mass deployable systems.

The Bigger Picture For The Drone Industry

For the broader drone sector, this transaction signals something important. Capital markets are paying attention to defense robotics again, particularly companies that combine AI, autonomy, and scalable manufacturing.

Consumer drones built the early narrative of the industry. Cinematic footage, aerial photography, and hobbyist platforms drove the first wave of growth. That chapter is still alive, but it is no longer where the largest checks are being written.

The new focus is defense, autonomy, and industrial scale.

The Pentagon wants thousands of systems, not dozens. It wants drones that can be fielded quickly, updated through software, and produced domestically. Companies that can meet those requirements are attracting both government contracts and private capital.

XTEND’s public listing, backed in part by a member of the president’s family, adds another layer of visibility to that shift. It also raises questions about governance, influence, and the intersection of politics and procurement.

DroneXL’s Take

This is not about hobby drones or cinematic camera platforms. This is about the economics of modern warfare.

The phrase “low cost per kill” may sound clinical, but it captures a strategic reality. Militaries are optimizing for affordability, scale, and speed. AI driven drones that can operate in complex environments check all three boxes.

XTEND is aligning itself with that demand, and the Trump family’s investment ties the company directly to the political center of gravity in Washington.

For investors, the upside is tied to defense budgets and procurement pipelines. For policymakers, the optics will remain under scrutiny. For the drone industry, the message is clear.

Autonomy is no longer optional. Scale is no longer theoretical. And public markets are now open to companies building the next generation of combat drones.

The era of consumer hype has given way to defense reality.

Photo credit: JFB Construction, Xtend.