New Delhi, May 20 -- Donald Trump Jr.-linked venture capital firm 1789 Capital is rapidly emerging as a major force in US private markets, positioning itself around what it calls "patriotic capitalism" and investing heavily in artificial intelligence, defense technology and American-focused businesses.

The firm's assets under management have surged from about $200 million to $3.5 billion over the past year as it pursued aggressive investments in some of the sought-after AI companies, according to a report by the Financial Times.

The expansion highlights how politically connected investors tied to President Donald Trump and his allies are increasingly shaping parts of the American investment landscape.

1789 Capital was founded around th...