Gaxos.ai Inc. (NASDAQ:GXAI) is moving into the defense sector with a new strategic investment, marking a shift beyond its core artificial intelligence content offerings.
The company said Tuesday it has acquired a 19.99% ownership interest in America First Defense (AFD), a U.S.-based defense technology developer. Financial details of the transaction were not disclosed.
America First Defense focuses on next-generation security technologies spanning both aerial and ground-based applications. Its development pipeline includes a detachable counter-drone platform designed to disable hostile unmanned aerial vehicles through targeted protocol-level cyber measures, aiming to avoid broader signal interference. The company is also building a biomimetic soft robotics system intended for discreet ground and subsurface missions.
AFD is targeting growing demand from federal and domestic security agencies, including the Department of War, Department of Homeland Security, as well as border and maritime security, municipal law enforcement and critical infrastructure operators.
Emphasis on U.S.-Built, Scalable Defense Solutions
The company’s strategy centers on domestically developed intellectual property, scalable cost structures and precision-built systems tailored to counter emerging autonomous threats. America First Defense aims to position itself within a defense landscape increasingly focused on cost-efficient, multi-domain technologies produced in the United States.
Byteplus Agreement Enhances AI Capabilities
Separately, Gaxos.ai recently completed a partnership agreement with Byteplus, the enterprise technology division of ByteDance, the parent company of TikTok.
Through the arrangement, Gaxos will gain preferred pricing and significant discounts on ByteDance’s advanced video generation models. The agreement is expected to accelerate the rollout of new AI-powered features within Art-Gen, Gaxos’ image and video creation platform.
BytePlus will also provide early access to upcoming product releases, further deepening the collaboration and potentially supporting improved gross margins as platform usage expands.
GXAI Price Action: Gaxos.ai shares were down 5.26% at $1.08 in premarket trading Tuesday, hovering near the stock’s 52-week low of $1.00.