This issue covers SpaceX’s $6.3 billion deal with Reflection AI to open Project Colossus compute access and OpenAI’s launch of GPT-5.5 Cyber security tools via its Daybreak partner program. It also highlights Alibaba’s HappyHorse video model, Anthropic’s encrypted reasoning in Claude Code, and advances in agentic and open-source AI models.

• SpaceX is betting $6.3B on Reflection AI to rent out Project Colossus's Nvidia GB300 compute for training open-source models, showing even space companies now see AI infrastructure as a core business.
• OpenAI is restricting GPT-5.5-Cyber to a limited release embedded through partner products (Daybreak) rather than opening broad access, prioritizing controlled security use over democratized availability.
• Loop engineering is emerging as a shift from one-off prompting to autonomous agents that select tasks, execute, verify, and iterate on their own.
• Small specialized models are closing the gap with frontier systems—Moebius (0.22B params) matches larger inpainting models at 15x the speed, and "knowledge agents" let smaller LLMs compete via embedded domain data.