On October 29, 2025, the business world’s gaze turned sharply toward Orlando, Florida, when a local drone company—linked to Donald Trump Jr.—secured a lucrative military contract with the Pentagon. The deal, which catapulted the relatively young firm into the national spotlight, has ignited a heated debate about political influence, ethical boundaries, and the evolving intersection of defense technology and high-stakes investment.
The timing of the contract’s announcement was no accident. Just hours before, Donald Trump Jr. had taken the stage at the Future Investment Initiative summit in Riyadh, Saudi Arabia, to promote his investment firm, 1789 Capital. The summit, often dubbed “Davos in the Desert” for its high-profile attendees and ambitious agenda, served as a platform for Trump Jr. to outline his vision for what he calls “patriotic capitalism.”
“We understand what the administration wants to do, because we helped craft some of that messaging,” Trump Jr. told a roomful of influential business leaders during a panel discussion, according to The New York Times. “So we can be on the outside but still have that understanding of what they plan to do.” The remark, delivered with characteristic confidence, was a direct response to questions about why investors should trust 1789 Capital with their money.
Founded in 2023, 1789 Capital has quickly amassed a formidable war chest. Regulatory filings reported by Reuters and cited by The New York Times show the firm’s assets under management have soared to nearly $2 billion, a meteoric rise that coincides with the first year of the new Trump administration. Industry tracker PitchBook pegs the firm’s assets at $1.25 billion, while more recent estimates from insiders suggest the number is closer to $2 billion. “The opportunity over here in the region is spectacular,” Trump Jr. said, reflecting on his first trip to Saudi Arabia and dinner with Crown Prince Mohammed bin Salman at Al-Yamamah Palace the night before the summit.
Central to 1789 Capital’s investment thesis is a focus on U.S.-based private companies that align with Trump administration priorities. The firm’s strategy, as described by Trump Jr. and his business partner Omeed Malik, revolves around rebuilding the American supply chain, expanding the domestic economy, and helping the United States compete in emerging markets like artificial intelligence. “We want to complement all the great work that the Trump administration is doing within the private sector,” Malik said, underscoring the firm’s close ideological alignment with current government policies.
Among 1789 Capital’s most notable investments are defense technology and AI companies such as Anduril Industries, Hadrian, and several of Elon Musk’s ventures, including SpaceX, xAI, and Neuralink. According to The New York Times, both SpaceX and Anduril, as well as Firehawk Aerospace (another 1789 Capital investment), have secured Pentagon contracts in 2025. The Orlando drone company’s recent Pentagon deal adds yet another layer to the firm’s growing influence in the defense sector.
One area drawing particular scrutiny is 1789 Capital’s investment in Vulcan Elements, a rare-earths mining and magnet manufacturing company. Vulcan Elements, which received Pentagon contracts in August 2025, is seen as a key player in America’s effort to reduce reliance on Chinese-dominated rare-earth markets. By backing companies like Vulcan, Trump Jr. and Malik aim to position 1789 Capital at the forefront of a new wave of “America First” industrial policy.
The firm’s rapid ascent and close ties to the Trump administration have not gone unnoticed by ethics experts. As reported by The New York Times, some watchdogs have described the situation as a “new and particularly alarming conflict of interest,” given that the president’s son is involved with companies receiving government contracts. The concern, they say, is that proximity to political power could unfairly advantage certain firms and blur the lines between public service and private gain.
1789 Capital, for its part, has pushed back hard against such criticism. In a statement, a spokesman for the firm insisted that “no one at the fund has ever worked in government” and that the company “maximizes transparency and compliance.” The spokesman went further, suggesting that “serious conflicts” exist in the business dealings of friends and relatives of Democratic officials—a clear indication that the firm sees itself as being unfairly singled out in a contentious political climate.
The controversy surrounding 1789 Capital is emblematic of a broader trend in the venture capital world. The Trump administration’s “America First” rhetoric has inspired a wave of similarly themed investment funds, including the $600 million “American Dynamism” fund at Andreessen Horowitz, which targets early-stage companies in defense, energy, education, and manufacturing. A new generation of politically conservative founders, such as Palmer Luckey of Anduril, has embraced the language of patriotism to pitch their companies to investors and policymakers alike.
Trump Jr. and Malik’s partnership began about five years ago, according to sources familiar with the firm’s inner workings, and their efforts have steadily gained momentum. Their approach has resonated with a segment of the business community eager to capitalize on a new era of government-industry collaboration. The Future Investment Initiative summit in Riyadh was a testament to this growing nexus, drawing not only Trump Jr. but also former Treasury Secretary Steven T. Mnuchin (now a private investor with backing from the Saudi public investment fund) and, in previous years, Trump’s son-in-law Jared Kushner.
Despite the swirl of controversy, 1789 Capital’s supporters argue that the firm is simply seizing opportunities in a rapidly changing economic landscape. They point to the need for robust domestic supply chains, advanced defense capabilities, and global competitiveness in technology as reasons to support the firm’s mission. Detractors, however, warn that the blending of political and business interests risks undermining public trust and creating an uneven playing field.
As the Orlando drone company’s Pentagon contract takes effect and 1789 Capital’s portfolio continues to expand, the debate over ethical boundaries and political influence in American business shows no sign of abating. The story is far from over, but for now, Donald Trump Jr. and his partners are firmly in the driver’s seat—charting a course through the complex, sometimes stormy waters where business, politics, and national security converge.
