Eric Trump and Donald Trump Jr are launching a new venture to build autonomous drones for sale to the U.S. military, according to a report, entering the defense sector just 12 days into the ongoing conflict with Iran.
Merger Details and Key Investors
Powerus Corporation, a company co-founded by former U.S. Army Special Operations veterans that builds drones for military and commercial use in high-risk environments, will merge with the Trump-backed Aureus Greenway Holdings, as reported by The Wall Street Journal. Aureus Greenway is a holding company for the Trump family's Florida golf courses, while Powerus is also based in the Sunshine State, with its headquarters in West Palm Beach.
Other investors in the new company include American Ventures, a Trump investment vehicle, Unusual Machines, a components company where Don Jr. serves as a board member and shareholder, and the Trump-backed investment bank Dominari Securities. Additionally, the asset manager of the Korea Climate & Governance Improvement Fund is investing $50 million separately.
Statements from Company Leaders
Brett Velicovich, a co-founder of Powerus and a regular pundit on conservative cable news channels, expressed enthusiasm about the backing. "We're huge fans of our backers," he said. "Eric and Don Jr. have been just fantastic supporters behind the scenes. They see the need for us to build drone technology at scale."
Matthew Saker, Aureus Greenway's interim CEO, highlighted the timing in a statement, calling the project a "compelling opportunity" made "even more relevant by current geopolitical uncertainties." He added, "The need for and uses of autonomous technologies, such as those produced by Powerus, are front-page news given developments in the Middle East and elsewhere."
Context of the Iran Conflict
The joint U.S.-Israeli airstrikes on Iran, which commenced on February 28, have resulted in significant developments:
- The killing of Tehran's Supreme Leader, Ayatollah Ali Khamenei.
- A wave of retaliatory strikes on American and Israeli targets across the region.
- The deaths of at least seven U.S. servicemembers.
- Provoked soaring global oil prices.
Drones have played a crucial role in the conflict, with Iran's Shahed-136 models, costing between $20,000 and $50,000 to produce, proving more effective on the battlefield than their low price might suggest.
International Drone Developments
Ukrainian President Volodymyr Zelensky revealed on March 5 that U.S. officials had sought help from his country, which has developed anti-drone laser systems after over four years of warfare with Russia. Some of these systems can reportedly be produced for as little as $1,000.
U.S. Military Requirements and Opportunities
The U.S. military has requirements that prioritize the acquisition of American-made weapons, creating an opportunity for the Trumps' latest project. This initiative will receive automatic preference over foreign imports, aligning with the Pentagon's Drone Dominance initiative, which aims to spend $1.1 billion on U.S. drones to support domestic manufacturers in a sector long dominated by Chinese brands.
Eric Trump's Response to Reporting
Eric Trump appeared to take offense at The Wall Street Journal's reporting on the deal. In a post on X (formerly Twitter) in response to the article, he stated, "I happen to believe drones will be a much better investment than companies that still print newspapers."
