US EditionPentagon Official Profited 4,800% on Musk's xAI Stock, Guardian Reports
Ethics filings show Michael’s xAI stake had been valued at $500,000 to $1 million before the sale, which may have produced a gain of about $24 million.
- On January 9, Pentagon Under Secretary for Research and Engineering Emil Michael sold his xAI stake, securing approximately $24 million in profit with returns reaching up to 4,800%.
- While Michael held these shares, the Pentagon announced two separate agreements with xAI, including selecting the Grok chatbot as one of four commercial providers in July 2025.
- Former White House ethics attorney Richard Painter noted that officials generally commit a criminal offense if state actions aid personal finances, stating, "There is no way that a decent ethics lawyer would let" an official hold such stock.
- Pentagon spokesperson Sean Parnell insisted that Michael remained "in full compliance with all ethics laws and regulations," citing the department's multi-layered framework for screening conflicts of interest.
- On December 18, the Office of Government Ethics issued Michael a divestiture certificate requiring him to offload xAI holdings to ensure conflict-of-interest compliance, and filings confirm he sold on January 9.
9 Articles
9 Articles
Pentagon denies wrongdoing for AI manager's $24m return on xAI investment
In this week’s dispatches from the American kleptocracy, a senior US ‘department of war’ official made up to a 4,800% return on a private investment in Elon Musk’s xAI. The official’s job, you ask? Why, overseeing the Pentagon’s use of AI, of course. What a normal thing to write about a functioning and definitely-not-at-all corrupt democracy. Emil Michael’s official title is ‘under secretary for research and engineering’ at the Pentagon. He mana…
Who is Emil Michael? Pentagon Official Sold xAI Stake for $24M After Landing Defense Deal
Financial records made public this month show that Emil Michael, a leading figure in US military AI, walked away with a $24 million (£17.88 million) gain from selling his private shares in Elon Musk's tech firm. This massive payday stands in stark contrast to the start of his tenure, when his interest in the company was valued at just $1 million (£0.75 million). Who is Emil Michael? In his role as the Pentagon's Under Secretary for Research and …
Trump official in legal hot water after murky $24 million stock sale
An official in President Donald Trump's Department of Defense could be in legal jeopardy after he disclosed the murky sale of stock that he held in Elon Musk's artificial intelligence firm, according to a new report. The Guardian reported on Thursday that Emil Michael, the undersecretary for researc...
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