JFB Swaps Blueprints for Battlefields in $1.5B AI Defense Merger

PALM BEACH, FL – February 17, 2026 – In a striking pivot from real estate to robotics, JFB Construction Holdings (Nasdaq: JFB) today announced a definitive agreement to merge with defense technology firm XTEND in a $1.5 billion all-stock transaction. The deal will forge a new Nasdaq-listed entity, XTEND AI Robotics, aimed at becoming a US leader in AI-driven autonomous defense systems.

The ambitious merger is bolstered by a roster of high-profile strategic investors, including Eric Trump, drone manufacturer Unusual Machines (NYSE: UMAC), American Ventures, LLC, Protego Ventures, and Aliya Capital. The combined company, to be headquartered in Tampa, Florida, plans to leverage XTEND’s battle-proven software with JFB’s infrastructure prowess to scale US-based production for domestic and allied security needs.

From Concrete to Combat: A Radical Strategic Pivot

JFB Construction Holdings has built its reputation over decades, erecting multifamily communities, shopping centers, and over two million square feet of commercial retail space across 36 states. The company’s move from the tangible world of concrete and steel into the complex domain of artificial intelligence and autonomous warfare marks one of the most unconventional strategic shifts in recent memory.

This pivot comes as the US construction industry faces a mixed forecast. While 2023 and 2024 saw growth, projections for 2025 and 2026 suggest a significant slowdown in non-residential construction spending, coupled with persistent labor shortages and a tight lending environment. By merging with XTEND, JFB is diversifying away from these potential headwinds and into the booming defense technology sector.

JFB’s leadership frames the move not as an abandonment of its core competency, but as a strategic application of it. The company’s experience in large-scale project execution and infrastructure development is being positioned as the key to unlocking XTEND’s manufacturing potential on US soil.

“What drew us to XTEND is the strength and scalability of its AI-driven operating system,” commented Joseph F. Basile III, Chief Executive Officer of JFB. “XOS is not just a product, but a core autonomy platform that integrates software, hardware, and mission execution in real-world environments. By pairing XTEND’s operating system and advanced AI capabilities with JFB’s execution, infrastructure, and buildout expertise, we see a clear opportunity to accelerate US manufacturing, scale production responsibly, and support a next-generation defense technology platform built in America and ready for the public markets.”

The Brains of the Operation: XTEND's Battle-Proven AI

At the heart of the new venture is XTEND's proprietary XTEND Operating System, or XOS. Described as a "software-first" platform, XOS is a human-guided autonomous system that enables a single operator to control and coordinate multiple drones across air, ground, and maritime domains. With more than 10,000 systems already deployed in over 32 countries, the technology is far from theoretical.

XTEND’s systems are designed to keep human operators out of direct danger while augmenting their capabilities. The platform is reportedly "battle-proven," having been utilized by the U.S. Department of Defense, the Israel Defense Forces (IDF), and other allied nations in complex, high-risk environments. A landmark partnership with Lockheed Martin’s legendary Skunk Works division to integrate XOS into its command-and-control architecture further validates the technology's maturity and strategic importance.

The surging demand for such systems is driven by an increasingly unstable global security landscape. Aviv Shapira, CEO and Co-Founder of XTEND, emphasized the market dynamics fueling the merger. “The demand for systems that keep operators out of harm’s way is surging as the global security environment grows more volatile, and this represents one of the largest market opportunities in defense technology today,” he stated. “By combining our platform with JFB, we are acquiring the resources we need to scale our manufacturing capabilities in the US and gaining access to the US public markets.”

The Trump Factor and High-Profile Backing

The merger's strategic investment group adds a significant layer of political and financial intrigue. The inclusion of Eric Trump, son of the former US President, immediately draws public attention to the venture. His investment is complemented by that of Unusual Machines (NYSE: UMAC), a drone company that appointed Donald Trump Jr. as a strategic advisor in late 2024, signaling a concentrated interest from figures associated with the Trump family in the burgeoning drone and defense tech space.

This backing is further solidified by institutional capital from firms specializing in defense and technology. Protego Ventures, an Israeli defense-focused venture capital fund, and Aliya Capital, a Miami-based investment firm, both co-led a recent $30 million funding extension for XTEND, underscoring their confidence in the company's growth trajectory even before the merger was announced. The involvement of such a diverse and influential group of investors suggests a powerful belief in XTEND AI Robotics' potential to capture a significant share of the defense market.

Fortifying the US Defense Base in a Volatile World

The creation of XTEND AI Robotics aligns directly with a major US strategic priority: strengthening the domestic defense industrial base. The plan to expand NDAA-compliant, US-made production at the Tampa facility is a central tenet of the merger. This move addresses growing concerns about reliance on foreign supply chains, particularly for critical technologies, and positions the new company as a key domestic supplier for the Pentagon and allied nations.

The market XTEND AI Robotics is entering is expanding at a breakneck pace. Global military spending reached a record $2.44 trillion in 2023, and the market for AI and robotics in aerospace and defense is projected to more than double, potentially reaching nearly $68 billion by 2034. This growth is fueled by the demonstrated effectiveness of unmanned systems in recent conflicts and a widespread push to integrate AI for superior intelligence, surveillance, and reconnaissance (ISR) capabilities.

While the rise of autonomous systems raises complex ethical and legal questions globally, XTEND's "human-in-the-loop" philosophy may navigate these concerns more smoothly. US Department of Defense policy currently supports "human-supervised" systems, which aligns with XTEND's approach of using AI to assist, rather than replace, human decision-making on the battlefield.

Under the terms of the agreement, which has been unanimously approved by both boards, current XTEND shareholders will own approximately 70% of the new entity, with JFB shareholders holding the remaining 30%. The transaction is expected to close in the middle of 2026, at which point XTEND AI Robotics is anticipated to begin trading on Nasdaq under the ticker symbol “XTND”.