Attor­ney Gen­er­al Ken Pax­ton Inves­ti­gates Drone Com­pa­ny for Threat­en­ing Tex­ans’ Secu­ri­ty and Pri­va­cy by Sell­ing Sur­veil­lance Prod­ucts That Are Like­ly Tied to[...]

Attorney General Ken Paxton has opened an investigation into Drone Nerds, LLC ("Drone Nerds") over the company's connection to Anzu Robotics, LLC ("Anzu"). Anzu is a known affiliate of the Chinese Communist Party ("CCP").

Anzu is a China-affiliated company that has marketed and sold drones in the United States. The company has done this while misrepresenting its security and privacy measures and concealing its ties to the CCP. These products raise serious concerns, including unauthorized data collection, surveillance capabilities, and potential access by the Chinese government. In February 2026, Attorney General Paxton sued Anzu to end the company's deceptive practices in Texas and protect consumers from threats to privacy and national security.

In November 2025, XTI Aerospace acquired Drone Nerds and Anzu. Further evidence has suggested that Anzu may be attempting to avoid restrictions by partnering with Drone Nerds as a distributor of its products. The two entities are likely operating together to evade Texas law to continue to sell drones and other products that enable the CCP to spy on Texans. Despite these concerns and previous evidence of Anzu's Chinese ties, Drone Nerds falsely represents to consumers that Anzu Robotics' Raptor drone is "headquartered and operated within the United States, giving you the peace of mind that your solution is delivered by your neighbors."

As part of the investigation, Attorney General Paxton has issued a Civil Investigative Demand ("CID") to Drone Nerds to determine the extent of the company's role in misleading Texas consumers in violation of the Texas Deceptive Trade Practices Act ("DTPA"). This action is part of the Office of the Attorney General's broader effort to protect Texans from foreign adversaries that seek to exploit technology for surveillance and data collection.

"Under my watch, the Chinese Communist Party will have no influence in Texas," said Attorney General Paxton. "I will thoroughly investigate any potential threat to the privacy and security of Texans and hold any company that enables CCP surveillance accountable."