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xAI Secures Classified Pentagon Access

When the Pentagon announced last summer that it had awarded $200 million AI contracts to four frontier technology companies, one name stood out: Elon Musk’s xAI. Now, with Grok cleared for the military’s most sensitive classified networks, questions about how that contract materialized — and who benefits — are back.

Musk led the Department of Government Efficiency as a senior White House adviser until stepping back from the role in mid-2025 — and owns xAI, the company that just reached the highest tier of government AI contracting. The overlap between those two roles has never been publicly addressed by the administration.

You can read more on the matter here.

What’s going on?

• Pentagon Threatens to Banish Anthropic as Hegseth Issues Ultimatum (theDeepDive)

• Pre-construction condo buyers face steep losses as Toronto prices slide (CBC)

• Trump Admin Taps Pentagon AI Program For Critical Minerals Pricing (theDeepDive)

• Trump to Sell the Economy During State of the Union Address (WSJ)

• Trump Admin Taps Pentagon AI Program For Critical Minerals Pricing (theDeepDive)

• Death of the Canadian starter home: New house prices pulling further away from incomes (Yahoo)

• Cuba’s Energy Lifeline Hinges On A Russian Tanker Heading Into US Blockade Waters (theDeepDive)

• Defence department to build 7,500 new housing units across Canada (Globe)

• UK Unveils Refinery Protection Plan as Carbon Costs Threaten Industry Survival (theDeepDive)

What’s the latest?

• Scotiabank: Scotiabank reported Q1 net income of $2.3 billion, up sharply from $993 million a year earlier, with adjusted EPS of $2.05 beating the $1.95 estimate. Revenue rose to $9.65 billion from $9.37 billion, while overall provisions for credit losses edged up to $1.18 billion. Canadian banking profit increased to $960 million, but loan-loss provisions climbed 7% YoY and 17% QoQ to $576 million, with impaired loan formations rising to $1.11 billion. International banking earned $717 million, global wealth management $481 million, and global banking and markets $545 million.

• Politics: Alberta’s legislature reconvenes with the provincial budget set for Thursday, and early signals point to a deficit alongside a planned 22% increase in spending on doctors. The government says the move supports health-care sustainability, while the NDP argues system performance has worsened. House leader Joseph Schow is outlining legislative priorities as the spring session runs until May. Separatism is emerging as a political flashpoint ahead of a petition deadline that could trigger a vote on Alberta leaving Canada.

• Markets: Canada’s TSX rose 54.26 points to 33,830.76 in late-morning trading, led by base metal stocks. U.S. markets were higher, with the Dow up 365.79 points, the S&P 500 up 38.44, and the Nasdaq up 198.95. The Canadian dollar slipped to 72.97 cents US, while oil fell $0.42 to $65.89 and gold dropped $63.70 to $5,161.90.

• Energy: Google plans to build its first Minnesota data center on a 480-acre site in Pine Island, pending regulatory approval and despite local opposition. Under an agreement with Xcel, Google will fund required grid and transmission upgrades and add 1,900 MW of renewables (1,400 MW wind, 200 MW solar, 300 MW storage) expected online in 2028–2029. The project includes a $36 million tax abatement and is projected to generate over $130 million in local tax revenue. Minnesota currently hosts 74 data centers versus 570 in Virginia.

• Tariffs: The U.S. began collecting a temporary 10% global import tariff, despite President Trump stating he wants the rate raised to 15%, creating policy uncertainty after last week’s Supreme Court ruling. Customs authorities confirmed the 10% rate based on Friday’s executive order, while no formal order for 15% has been signed. Section 122 permits tariffs for up to 150 days, with the administration citing a US$1.2 trillion goods trade deficit and a current account deficit of 4% of GDP. Markets reacted cautiously, European equities opened lower, and questions remain over potential refunds and future extensions.

The Playbook Behind a $5.5 Billion Gold Sale

The stock market and stuff

• BC Approves Copper Mountain Mine Expansion Near Princeton (theDeepDive)

• Paramount Said To Have Submitted Revised Offer For Warner Bros Discovery (theDeepDive)

• Stripe valuation soars to $159bn in latest share sale (FT)

• Meta and AMD Agree to AI Chips Deal Worth More Than $100 Billion (WSJ)

• Aya Intersects New Structure At Boumadine Parallel To Main Trend (theDeepDive)

• Trump Pressures Netflix to Remove Board Member Susan Rice Amid Warner Bros. Merger Review (theDeepDive)

In the juniors

• Collective Mining Intercepts 54.55 Metres @ 7.04 g/t Au and 16 g/t Ag with Assay Results Still Pending for Another 370 Meters of Mineralization (JMN)

• Nord Precious Metals Hits Multiple Intervals Of Mineralization In Latest Drill Hole At Castle East (theDeepDive)

• Aya Gold & Silver Identifies New Parallel Structure at Boumadine and Reports High-Grade Exploration Results (JMN)

FULL DISCLOSURE: Power Metallic is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Power Metallic. The author has been compensated to cover Power Metallic on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.