Musk Gets Military Money

Meta's multi-billion-dollar data center expansion, the Pentagon's controversial $200M Grok deal, and Claude's seamless Canva integration...

In this edition we’ll be covering…

• The Pentagon's landmark AI partnership with Musk's xAI

• A tutorial on how to use Claude's new native Canva integration for effortless design

• Meta's massive infrastructure play that could drain entire water supplies

• 5 trending AI signals from the week

• 3 AI tools to sharpen your productivity

• And much more...

The Latest in AI

Pentagon Gives Musk $200M

Just days after Grok spewed antisemitic content, Elon Musk's xAI landed a $200 million Pentagon contract. Talk about timing that would make even a PR crisis manager sweat...

The Department of Defense announced its "Grok for Government" initiative, bringing Musk's controversial chatbot into federal agencies alongside similar deals with OpenAI, Google, and Anthropic.

What’s driving this partnership:

• The Pentagon is creating an AI ecosystem across multiple vendors, with each company getting $200M contract ceilings through the General Services Administration.

• xAI promises custom AI tools for healthcare, national security, and government services, despite Grok's recent public relations disasters.

• The deal comes after Musk's falling out with Trump, yet his companies continue securing federal contracts.

So What?

The Pentagon is betting that xAI's technical capabilities outweigh its content moderation failures, signaling that the government's AI adoption won't be slowed by PR scandals.

OpenAI, Anthropic, and Google are all getting similar $200M contracts, creating a government AI ecosystem where safety-focused companies sit alongside controversy-prone ones. OpenAI already secured military contracts for "warfighting" applications, while Anthropic built Claude with constitutional AI principles, yet both are now part of the same defense portfolio.

Get Your Hands Dirty!

Claude’s New Canva Integration Makes Design Effortless

Claude just got a major upgrade that lets you create, edit, and manage Canva designs without leaving your conversation.

This integration uses Canva's Model Context Protocol (MCP) server, making it the first AI assistant to offer seamless design workflows.

Here's how to activate it (paid accounts required for both):

1. When you open Claude, hit the “knob” button under the chat window. This is where you will see all connectors now.

2. Hit the Canva connector and authenticate in your browser with your account.

3. Start designing with natural language: Simply describe what you want: Create a presentation slide about Q3 sales results with our brand colors or Resize this Instagram post for LinkedIn and make the text more professional.

4. Search and summarize existing content: You can also ask Claude to Find all presentation templates related to marketing or Summarize the key points from my brand guidelines document.

🔥 Pro Tip: Use Claude's Projects feature to build design knowledge repositories. Upload your brand guidelines, color palettes, and style preferences so Claude can maintain consistency across all your designs!

Beyond Canva: This is just the beginning. Claude now has an entire (and native) connectors directory with tools like Notion for project management, Stripe for payments, Figma for design-to-code workflows, Linear for development tracking, and Socket for code security.

Before, we had to manually configure MCP servers for these, guess not anymore…

Industry Intel

Zuckerberg’s Supercomputer Bet Could Drain America

Mark Zuckerberg just announced Meta's most ambitious infrastructure play yet: multiple multi-gigawatt data centers.

The first supercluster, called Prometheus, comes online in 2026 in Ohio, while the larger Hyperion facility will scale to 5 gigawatts (almost the size of Manhattan).

The scale is staggering, but so is the environmental cost. While Zuckerberg talks about investing "hundreds of billions" into superintelligence, local communities are already paying the price in depleted water supplies and skyrocketing utility costs.

What's behind Meta's infrastructure gamble:

• The company is building these centers to power Meta Superintelligence Labs, recruiting top talent from OpenAI and Google DeepMind to compete in the AGI race.

• Current Meta data centers have already damaged local wells east of Atlanta and could force water rationing by 2030, with prices increasing 33% in the next two years.

• These AI-focused facilities will require up to 6 million gallons of water per day—more than entire county's daily usage—compared to typical data centers using 500,000 gallons.

So What?

Meta's water crisis reveals the hidden cost of the AI arms race. While tech leaders promise digital superintelligence, they're draining real-world resources from communities that have no say in Silicon Valley's ambitions.

This sets up a fascinating tension; as AI becomes more capable, its physical infrastructure becomes more destructive. The companies racing toward AGI are creating a sustainability problem that their future AI systems will supposedly solve.

It's peak Silicon Valley irony, breaking the world to save it…

Quick Bites

Stay updated with our favorite highlights, dive in for a full flavor of the coverage!

Sam Altman announced on X that OpenAI is delaying its planned open-weight model launch to run additional safety tests, admitting "once weights are out, they can't be pulled back."

Microsoft unveiled Phi-4-mini-flash-reasoning, delivering 10x faster AI responses with 2-3x lower latency for edge and mobile applications.

Cognition acquired Windsurf's agentic IDE just days after Google DeepMind hired its CEO and research leaders.

AWS is reportedly launching an AI agent marketplace this week with Anthropic as a marquee partner, allowing startups to sell AI agents directly to enterprise customers.

Meta acquired voice startup Play AI to accelerate development of its generative audio AI capabilities.

Trending Tools

🌙 Kimi K2 - China's Moonshot AI just dropped this trillion-parameter model that rivals ChatGPT and Claude, available completely free unlike subscription-based competitors.

📄 PandaExtract - AI-powered data extraction tool that intelligently pulls structured information from PDFs, websites, and documents without manual pattern setup.

🏗️ bldbl - AI-powered build planning platform that breaks down development ideas into actionable tasks and implementation roadmaps for software projects.

The Neural Network

Last week we asked: Do you trust Cursor to make changes to your code autonomously?

The results might surprise you. A whopping 50% of developers said "Absolutely, AI is more reliable than most developers." 😯 Half of you guys are ready to hand over the keys to AI completely…

Meanwhile, we have remote construction teams now…

Until we Type Again…

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