● Covered by 1 source · 1 reportMedium impact1 negative
Pentagon AI Official Sells Millions in AI Company Stock After Previous xAI Profit
Key points
- Pentagon AI official Emil Michael sold $5M-$25M in Perplexity stock.
- Michael previously profited up to $24M from xAI stock sales.
- He received a loan from Perplexity and served on its advisory board.
- Ethics experts question the appearance of these financial dealings.
Pentagon Official's Latest Stock Sale
Emil Michael, the Pentagon's top official for military artificial intelligence policy, sold his holdings in the AI company Perplexity in June for an amount between $5 million and $25 million. This transaction is detailed in federal financial records, which report dollar values in ranges rather than specific figures.
Previous AI Investment Profits
Earlier this year, Michael also profited from his investment in Elon Musk's AI company, xAI. He gained between 400% and 4,800% from selling his xAI shares in January, with profits reaching up to $24 million. The records do not specify if the Perplexity sale resulted in a profit due to the broad range of values listed.
Financial Ties to Perplexity
Michael's financial disclosures from 2025 indicate he received a personal loan from Perplexity a year prior, ranging from $250,000 to $500,000, at an interest rate of 4.57%. He also served on a Perplexity advisory board, stepping down upon entering federal service. Perplexity secured a contract with the US government's General Services Administration in November of the previous year, though direct ties to the Pentagon are not specified in records.
Ethics Concerns Raised
Ethics expert Richard Painter, a former White House lawyer, stated that Michael should have divested all interests in the company before starting his government role. While Michael's ownership of AI company stock may not violate law, Painter noted it raises questions regarding appearances. A Pentagon spokesperson affirmed that Michael and other defense officials comply with ethics laws and regulations, citing a "rigorous, multi-layered ethics framework."
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Emil Michael, the Pentagon official overseeing military AI policy, sold between $5 million and $25 million worth of stock in the AI company Perplexity in June. This follows an earlier profit of up to $24 million from selling shares in Elon Musk's xAI, raising questions about potential conflicts of interest for an official in his position.