US defense official overseeing AI reaped millions selling xAI stock after Pentagon entered agreement with company

Expert said federal law bars officials from taking actions in their jobs that benefit their own financial interests A high-profile US defense department official who oversees the agency’s artificial intelligence efforts made a profit of up to $24m selling a private investment he held in Elon Musk’s AI company earlier this year, according to government ethics records released this month. The value of his stake totaled a maximum of a million dollars when he joined the department. Emil Michael, who is the Pentagon’s under secretary for research and engineering under the Trump administration, oversees negotiations with AI companies and has been pushing the defense department to rapidly increase the widespread use of AI. Michael declared in March 2025 that he had a position in xAI valued between $500,000 and $1m. He sold those holdings on 9 January for between $5m and $25m, according to disclosures filed with the office of government ethics (OGE). He reported that he owned the xAI shares through a company called KQ Partners. (Government financial disclosure reports are designed to show ranges of holdings, rather than precise amounts.) The increase in value amounts to a gain of between 4