Gaxos.ai Inc. (NASDAQ:GXAI) shares surged Thursday after the company announced a key development in counter-drone technology.

The company said America First Defense (AFD) secured a license for a new system designed to stop hostile unmanned aircraft.

Earlier this week, Gaxos.ai revealed it had acquired a 19.99% strategic stake in America First Defense. The investment strengthens its exposure to the fast-growing counter-UAS sector.

Demand for counter-drone technology is rising as governments and critical infrastructure operators seek better ways to defend against drone threats.

Navy-Developed Counter-Drone System

America First Defense received a license for the Detachable Drone Highjacker (DDH) system. Researchers at the Naval Postgraduate School originally developed the technology.

The DDH is a drone-mounted electronic warfare payload built to counter hostile unmanned aircraft systems.

Unlike traditional counter-drone tools that rely on wide signal jamming, the DDH attaches to a friendly drone. It then disables enemy drones using targeted cyber operations.

As a result, the system can intercept hostile drones during air-to-air operations. At the same time, it avoids broad interference with nearby communications networks.

Commercial Development Plans

Under the licensing agreement, America First Defense will continue developing the DDH platform and bring it to market as a scalable airborne counter-UAS solution.

The company plans to deploy the technology across defense, security, and critical infrastructure protection.

"This platform represents a differentiated approach to defeating hostile drones through precision electronic warfare," said Vadim Mats, CEO of Gaxos. "Our stake in AFD positions us at the forefront of counter-UAS technology."

GXAI Price Action

Gaxos.ai shares were up 75.40% at $2.17 at the time of publication on Thursday, according to Benzinga Pro data.

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