WireApril 9, 2026 at 8:31 PM
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A high-ranking Pentagon official overseeing artificial intelligence initiatives reportedly made up to $24 million from selling shares in Elon Musk’s AI company, xAI, after the Department of Defense entered into an agreement with the firm. Emil Michael, the Under Secretary for Research and Engineering, sold his private investment earlier this year, according to recently released government ethics records.
Michael, who joined the Defense Department with a stake valued at a maximum of $1 million, has been a driving force behind the Pentagon’s push to rapidly integrate AI technologies. His role includes negotiating agreements with AI companies, raising questions about potential conflicts of interest.
Federal law prohibits officials from taking actions in their official capacity that could benefit their personal financial interests.
The substantial profit from the stock sale underscores concerns about the intersection of government decision-making and personal financial gain. The Pentagon has yet to comment on whether Michael’s actions violated federal ethics regulations. This incident highlights the need for stricter oversight of officials handling sensitive technology contracts.