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Exclusive Story
Is This Pre-IPO AI Robotics Company the Next Big Defense Play?By Bridget Bennett. Publication Date: 4/30/2026. 
Key Points
- XTEND's AI operating system enables drone and robot autonomy across five levels, reducing operator training from months to minutes and allowing remote mission control from thousands of miles away.
- The company has active partnerships with Lockheed Martin, Ondas Holdings, Unusual Machines, and Red Cat Holdings, with its software already deployed in defense, law enforcement, and disaster response scenarios across more than 32 countries.
- XTEND is pursuing a NASDAQ listing under the ticker XTND through a planned $1.5 billion merger with JFB Construction Holdings, with the deal expected to close by mid-2026.
- Special Report: Have $500? Invest in Elon’s AI Masterplan
The drones are already in the field. They're flying into earthquake rubble, operating in contested airspace across active conflict zones, and patrolling sites where deploying a human would be too risky. The technology driving them isn't a prototype—it's a deployed, battle-tested AI operating system. XTEND CEO Aviv Shapira calls it "AI at the speed of flight," and with a planned $1.5 billion Nasdaq listing on the horizon, the market is starting to pay attention. An Operating System, Not Just a Drone CompanyThe most important thing to understand about XTEND is what it actually sells. It's not a drone manufacturer competing in what Shapira calls "a race to the bottom" on hardware specs. It's a software company—an AI operating system that integrates with third-party drones and robots, making them dramatically smarter and easier to operate.
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The origin story matters. XTEND began in competitive drone racing, where Shapira's team discovered that the hardest part of flying a drone at 100 miles per hour through an obstacle course wasn't the hardware—it was the training time. They built software that compressed months of FPV training into about three minutes. The insight was simple: if you could make drones that easy to fly for sport, you could make them that easy to deploy where lives are on the line. That pivot from gaming to defense mirrors trajectories investors have seen before. NVIDIA (NASDAQ: NVDA) didn't set out to power large language models; it set out to render video games. The parallel isn't lost on Shapira, and it shouldn't be lost on investors. Five Levels of Autonomy and a Timeline That's Moving FastXTEND has mapped out five levels of drone autonomy, and the company says it's already operating at levels two and three at scale, with roughly 10,000 systems deployed across more than 32 countries. Level one is traditional manual control: one operator, one drone, hands on the controller. Level two introduces AI assistance, where the drone handles the how while the operator handles the what. Level three, which XTEND calls task autonomy, removes the operator from the field entirely. A soldier or security team thousands of miles away can tap a window on a screen and the drone enters a building. They can say "scan for survivors" and the drone runs the search—no manual flight required. Level four, what Shapira calls AI pilots, is where one operator directs a swarm of hundreds of drones on a complex mission with a single prompt. Level five, still two to three years out, would have AI handle mission planning and orchestration end to end. The Turkey earthquake deployment is a clear illustration of this in practice. XTEND sent indoor drones, operating without GPS or consistent communications, into collapsed buildings to search for heat signatures of survivors. The human team didn't fly the drones through rubble; they instructed the drones what to find. The Partnership RosterThe company's software-first model has made it a natural integration partner for several hardware names investors may already follow. Lockheed Martin (NYSE: LMT) is co-developing a unified control system with XTEND, and the collaboration has deepened significantly. In late 2025, Lockheed's Skunk Works division integrated XTEND's XOS operating system into its MDCX autonomy platform, enabling a single operator to command multiple classes of unmanned systems simultaneously in joint all-domain command-and-control scenarios. The companies also demonstrated a "marsupial" mission, where a large mother drone deploys and controls a smaller drone on target. Ondas Holdings (NASDAQ: ONDS) is another active partner, running XTEND's software on its hardware to build aerial defense systems capable of detecting and intercepting hostile UAVs—a use case that has moved from theoretical to urgent given recent conflicts. Unusual Machines (NYSE American: UMAC), based in Orlando, supplies U.S.-made components—motors, batteries, flight controllers—that go into XTEND's drone production at its Tampa manufacturing facility. Red Cat Holdings (NASDAQ: RCAT) is listed among peers in the drone space, though the lines between competition and collaboration in this ecosystem are notably blurry. Boston Dynamics is also using XTEND's software on its platforms, extending the company's footprint into ground robotics alongside aerial systems. Government Contracts and Proven DemandThe partnership roster is notable, but the contract wins are where investor attention should focus. In December 2024, XTEND secured an $8.8 million DoD contract through the Irregular Warfare Technical Support Directorate to deliver its Precision Strike Indoor and Outdoor drone system, the first DoD-approved indoor/outdoor flying loitering munition platform of its kind. Then in November 2025, the company won an additional multi-million-dollar contract from the Office of the Assistant Secretary of War for Special Operations to develop and deliver next-generation AI-enabled one-way attack drone kits. Active users of XTEND's systems now include the U.S. Department of Defense, SOCOM, the Israel Defense Forces, Singapore, and allied European defense forces. Production is scaling out of the company's Tampa headquarters, which opened in July 2025; the company also announced a $30 million extension to a $70 million Series B round. The Merger and the Path to Public MarketsXTEND is currently private, but a merger with JFB Construction Holdings (NASDAQ: JFB) is in process. The all-stock deal is valued at $1.5 billion, with the combined company to be renamed XTEND AI Robotics and expected to trade on Nasdaq under the ticker XTND. The transaction is expected to close by mid-2026, pending regulatory approvals and S-4 effectiveness. Under the deal's terms, current XTEND shareholders would own approximately 70% of the combined company, with JFB shareholders retaining roughly 30%. The merger has been approved unanimously by both boards. What to WatchThe S-4 filing will be the first public look at XTEND's financials and business structure—a significant data point for anyone tracking this space. The company reports a $500 million pipeline and $71 million in backlog, with $152 million in investor commitments and $42 million already funded. The upside case is that an AI operating system designed for drones and robots sits in a structurally different position than the hardware makers it partners with. If autonomy scales the way Shapira describes, the software layer may be the most defensible part of the stack. The risks are execution: international expansion, a pending merger, maintaining active government contracts, and competing with well-funded rivals. Keep an eye on that S-4—it's where the full picture of this company will begin to come into view. |
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