US defense official overseeing AI reaped millions selling xAI stock after Pentagon entered agreement with company
AI Summary
A US defense official, Emil Michael, who oversees the Pentagon's AI initiatives, profited significantly from selling his xAI stock after the department entered into agreements with the company. Michael's initial investment in xAI, valued at up to $1 million, was sold for between $5 million and $25 million in January 2026. During Michael's ownership, the Pentagon announced two agreements with xAI, including selecting Grok as an AI provider and a new agreement to deploy xAI capabilities. Despite receiving a divestiture certificate in December 2025 to avoid conflicts of interest, Michael sold his shares after the second agreement was announced. Ethics experts suggest this raises concerns about potential conflicts of interest and possible criminal violations.
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Key Claims (5)
AI-ExtractedMichael received a divestiture certificate from the OGE that said he would sell his xAI stock.
It was a criminal violation for government officials to participate in government actions that benefit their own financial interests.
Federal law prohibits officials from taking actions in their jobs that benefit their own financial interests.
The Pentagon announced two separate agreements with xAI during the period Michael owned the stock.
Emil Michael sold xAI stock for between $5m and $25m on January 9, 2025.
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