Main points
- Eric Trump is investing in a $1.5 billion deal that combines drone maker Xtend with JFB Construction Holdings.
- Xtend has received a multi-million dollar contract from the Ministry of Defense to develop drones based on artificial intelligence.
Trump's son invests in drone manufacturer / Depositphotos
Eric Trump is backing a drone company to bolster his family's defense portfolio, while his father, Donald Trump's, administration is bolstering the industry.
Why is the Trump family investing in drone production?
President Donald Trump's second-oldest son is investing in a $1.5 billion deal, Bloomberg reports.
Drone maker Xtend will go public, according to the filing, through a merger with Florida-based JFB Construction Holdings. Other investors include Unusual Machines Inc., a separate drone company that has brought in Eric's brother, Donald Trump Jr., as an advisor.
The deal would bring the Trump family closer to defense manufacturing, a priority for the administration. It also gives them a financial interest in a company that could benefit from the Defense Department's plans to accelerate the procurement of military drones, which the administration says is being held back by excessive red tape.
– the publication writes.
What is known about the drone development competition?
On November 11, Xtend announced that it had won a multimillion-dollar contract from the Department of Defense to develop artificial intelligence-based drones.
The JFB deal comes as Xtend prepares to receive new government support. It is one of 25 companies participating in the first phase of the Department of Defense's $1.1 billion Drone Domination program .
A group of 25 companies participating in the initial phase of the program, including Xtend, will deliver prototypes to Fort Benning for testing. At least 12 applicants will be selected based on their performance to produce more drones.
How does the Trump family earn money?
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The Trump family has made about $1.4 billion from crypto projects, a significant portion of their $6.8 billion fortune. These projects have received a boost from Trump’s own policies, as he signed a cryptocurrency law and appointed regulators who have dismissed lawsuits against the industry.
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Eric Trump has also significantly increased his fortune through investments in cryptocurrency, including American Bitcoin and World Liberty Financial. His fortune is estimated at $750 million, and he continues to profit from new licensing deals from various countries, including Dubai and Saudi Arabia.