US defense official overseeing AI reaped millions selling xAI stock
theguardian.com
April 9, 2026
4 min read
44/100
Summary
A US defense official overseeing AI efforts profited up to $24 million from selling stock in Elon Musk's AI company, xAI, after the Pentagon entered an agreement with the firm. Emil Michael, the under secretary for research and engineering, initially held a stake valued at a maximum of one million dollars when he joined the department.
Key Takeaways
- Emil Michael, the Pentagon's under secretary for research and engineering, sold his xAI stock for a profit of up to $24 million after the Pentagon entered agreements with the company.
- Michael's xAI holdings increased in value by between 400% and 4,800% from when he declared his position to when he sold it.
- Federal law prohibits government officials from participating in actions that benefit their own financial interests, raising ethical concerns about Michael's stock ownership while overseeing AI negotiations.
- The Pentagon stated that Michael was in full compliance with ethics laws, despite criticisms from ethics experts regarding potential conflicts of interest.
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