Imagine a world where the line between gaming and warfare blurs, where technology once used for entertainment becomes a decisive factor on the battlefield. This is the story of XTEND, an Israeli company that has transformed from creating gaming drones to becoming a key player in the future of military technology. But here's where it gets controversial: their drones, allegedly involved in the killing of a Hamas leader, have thrust them into the global spotlight, raising ethical questions about autonomous warfare. And this is the part most people miss: XTEND’s true innovation lies not in the drones themselves, but in their operating system, XOS, which allows a single operator to control a swarm of drones, potentially revolutionizing combat strategies.
The journey began in the early 1990s in Rishon LeZion, Israel, with two brothers, Matteo and Aviv Shapira. While Matteo was engrossed in video games, Aviv was building model airplanes, a hobby that would later evolve into a multi-million-dollar defense company. Fast forward to 2026, Aviv Shapira, now 42, has sold tens of thousands of drones to multiple armies, including Israel and the United States, and secured a strategic partnership with Lockheed Martin, one of the world’s leading defense contractors.
XTEND gained international attention after footage surfaced of one of its drones allegedly killing Hamas leader Yahya Sinwar, though this was never officially confirmed. This incident, however, brought the company into the global spotlight. But XTEND’s capabilities extend far beyond this single event. The company is poised to play a pivotal role in the U.S. Army’s Project Replicator, a Pentagon initiative aimed at countering China’s mass production of inexpensive robots with swarms of low-cost, expendable systems.
Project Replicator envisions a future battlefield dominated by autonomous weapons, where artificial intelligence operates with minimal human intervention. The goal is to overwhelm adversaries with vast numbers of cheap, disposable drones, unmanned vessels, and ground robots, forcing them to expend expensive resources on low-value targets. XTEND’s loitering attack drones, designed for mass production and controlled by their advanced operating system, XOS, fit perfectly into this strategy.
The company’s strategic partnership with Lockheed Martin is a significant milestone. Under this agreement, XTEND’s XOS operating system will be integrated into Lockheed Martin’s command-and-control architecture, enabling the simultaneous management of the entire U.S. military. This project is led by Lockheed’s elite Skunk Works unit, renowned for developing groundbreaking technologies like the SR-71 Blackbird and the F-22 Raptor. Skunk Works values not only XTEND’s technology but also its real-world battlefield experience in Gaza, Lebanon, and Ukraine.
One of the most innovative aspects of XTEND’s technology is its ‘marsupial’ mission concept, where a large mother drone deploys multiple smaller drones, all controlled by a single operator. This approach represents the cutting edge of drone warfare and could become a dominant strategy in future U.S. combat plans. Without XTEND’s technology, such missions would likely be infeasible.
Founded in 2018 by Aviv and Matteo Shapira, along with Robbie Liani and Adir Tubi, XTEND initially focused on high-speed gaming drones paired with VR headsets. However, reality intervened in 2019 during the incendiary balloon attacks from Gaza, when Israel’s Defense Ministry recognized the military potential of XTEND’s technology. After a successful demonstration, the company secured its first defense contract, marking the beginning of its rapid growth.
Today, XTEND’s software enables drones to operate in GPS-denied, communication-jammed environments, using computer vision and onboard AI. This capability has been crucial in conflict zones like Ukraine, where XTEND’s drones have proven resilient against electronic warfare. The company’s success has led to extensive support from Israel’s Defense Ministry, including tens of millions of shekels in funding and operational testing with elite combat units.
But XTEND is not just a military contractor. The company is also developing drone and robot control systems for civilian applications, such as policing and rescue operations. Notably, XTEND’s operating system is installed in Boston Dynamics’ robotic dog, Spot, showcasing its versatility.
The partnership with Lockheed Martin, spearheaded by George Hellestren, a senior fellow specializing in autonomy and AI, is a game-changer. Hellestren, a proponent of the marsupial warfare concept, sees XTEND’s technology as a force multiplier for the U.S. military. By integrating XTEND’s XOS with Lockheed’s MDCX platform, they aim to create a unified control system capable of managing diverse unmanned systems across multiple domains.
However, this partnership raises questions. Is XTEND becoming an exclusive sub-system within MDCX, like Anduril’s closed Lattice system? Shapira assures that XTEND remains open to working with any system, emphasizing their focus on software rather than hardware. “We are not a drone company but a software company,” he states. “We are in the business of keeping human operators out of danger.”
XTEND’s success has not gone unnoticed. The company has secured contracts worth tens of millions of dollars, including a $8.8 million Pentagon tender for loitering munitions and deals to supply Wolverine drones to U.S. special units. With over 10,000 drones sold to more than 32 countries, XTEND’s revenue grew by 113 percent last year, and its order backlog stands at $50 million. Shapira predicts that XTEND will surpass $100 million in annual revenue this year, with even more optimistic forecasts following the Lockheed Martin partnership.
Yet, challenges remain. The drone market is becoming increasingly competitive, with falling prices and fierce competition from China. XTEND must continue to shift its focus toward software-driven revenue to sustain its growth. Additionally, the defense-tech boom may not last forever, and a return to global stability could lead to reduced defense budgets.
Despite these challenges, XTEND’s future looks bright. With a valuation estimated between $200 million and $300 million, and over $106 million raised from investors, the company is well-positioned for further growth. If XTEND becomes a preferred supplier in major Pentagon programs, its valuation could soar into the billions, potentially making it Israel’s first defense-tech unicorn.
As XTEND continues to push the boundaries of autonomous warfare, it raises important questions about the ethics of AI-driven combat. Are we ready for a world where machines make life-and-death decisions on the battlefield? And what are the implications for global security? These are questions that XTEND, Lockheed Martin, and the world at large must grapple with as we step into this new era of warfare. What do you think? Is the integration of AI and autonomous systems in warfare a step too far, or an inevitable evolution of military technology? Share your thoughts in the comments below.
