XTEND, an AI software and robotics company, was selected for Phase II of the US Defense Department’s Drone Dominance Program (DDP), becoming one of a limited number of companies tied with the Pentagon’s drone procurement goals, JFB Construction Holdings announced earlier this week.

XTEND is set to go public via a proposed merger with JFB this summer. The company was founded in Tel Aviv and is currently headquartered in Tampa, Florida.

DDP is a defense initiative aiming to “accelerate the deployment of next-generation autonomous drone technologies across the US military,” according to JFB.

The program is among the largest emerging US initiatives focused on “accelerating the deployment and domestic scaling of autonomous drone systems for future military operations,” JFB noted.

According to DDP’s publicly issued statements, it intends to procure over 200,000 drones by 2027 in order to deploy them across “complex operational environments.”

Israeli drone startup XTEND has secured a multi-million-dollar contract from the US Department of Defense to develop and deliver AI-enabled, modular, one-way attack drones designed for close-quarter combat.
Israeli drone startup XTEND has secured a multi-million-dollar contract from the US Department of Defense to develop and deliver AI-enabled, modular, one-way attack drones designed for close-quarter combat. (credit: XTEND)

In December, the Department of War (DoW) announced that the Drone Dominance Program would purchase $1 billion worth of small lethal drones over the next two years.

With hundreds of drone companies in the United States, the program is designed to test whether the ecosystem can manufacture low-cost systems at scale and quickly enough to meet the demand of the US military.

Phase II of the DDP is expected to take place at Camp Grayling, Michigan, where the Pentagon is likely to hold a qualifier event to evacuate autonomous systems across “complex operational scenarios and contested mission environments.”

At this event, XTEND “expects to demonstrate how its proprietary XOS operating system enables scalable human-guided autonomous operations across complex and contested environments.”

The XOS operating system “powers human-guided autonomous platforms designed for defense, national security, and public safety missions,” the company said.

“Modern operational environments require autonomous systems that can scale rapidly, operate reliably in contested conditions, and help keep operators out of harm’s way,” Co-founder and CEO of XTEND, Aviv Shapira, said.

“We believe our participation in the next phase of the Drone Dominance Program reflects the growing importance of AI-powered autonomy, human-guided mission systems, and scalable operational robotics within the future US defense ecosystem,” Shapira added.

“XTEND’s advancement into the next phase of the Drone Dominance Program represents meaningful validation of the company’s autonomous systems, operational capabilities, and growing role within the US defense ecosystem,” JFB CEO Joseph F. Basile, III, said.

“We believe this initiative reflects the Department of Defense’s increasing focus on scalable autonomous technologies, and XTEND is well-positioned to support that evolving operational need,” Basile added.

DDP’s May ‘Lethality Challenge’ winners included Israeli company Kela Technology

In May, the DDP announced five winners of a “Lethality Challenge,” which addressed the critical need for cost-effective, mass-producible, and easily integrated lethal payloads for small drones.

One of the winners was Israeli defense-tech start-up Kela Technology. The others were Bravo Ordnance, Kraken Kinetics, Mountain Horse Solutions, and defense giant Northrop Grumman.

The Defense Innovation Unit announced that the winners are to receive a cash prize of $10,000 and be presented to all Gauntlet II applicants as a part of a preferred munitions solutions list.

XTEND was one of 26 companies participating in the first Gauntlet, but it did not rank in the top 11 and therefore was not selected for follow-on production contracts.

However, companies that were not selected during the challenges could still qualify for later rounds, since additional phases test differing characteristics.

From gaming to the battlefield 

Xtend was founded in 2018 by Shapira, Matteo Shapira, Rubi Liani, and Adir Tubi. The company specializes in human-guided autonomous machine systems for defense applications.

With their products, Xtend aims to enable pilots to control and interact with their drones and autonomous ground vehicles for various mission types using VR/AR interfaces and AI, including underground or other complex environments.

The company's AI-enabled systems are being used by the US Department of Defense, Singapore, Europe, the UK, and the IDF. XTEND delivers next-generation autonomous systems for defense, public safety, and private security applications built on its battle-proven XOS operating system. Its products utilize remote operational capabilities, enabling multiple air, ground, and maritime drones to execute complex, dynamic missions with immediate operational readiness. 

Xtend was originally founded as a gaming company that used drone-based extended reality technology along with virtual reality to simulate flight in video games. But on October 7, 2023, Shapira realized how his technology could help IDF soldiers and developed a new Concept of Operations (CONOPS) where their drones enter the battlefield before the soldiers.

In an exclusive interview last year with Defense & Tech by The Jerusalem Post, Shapira explained that while 80% of their products are drones, 20% are ground platforms. All of their platforms are battle proven, having mapped tunnels under the Gaza Strip and even intercepted Hezbollah drones in the north of the country.


Anna Ahronheim contributed to this report.