It is reported that the Pentagon’s Under Secretary for Research and Engineering, Emil Michael, who oversees the Department of Defense’s AI initiatives, sold his stake in Elon Musk’s AI company, xAI, on 9 January 2026, realising a profit between $5 million and $25 million. This stake, initially valued between $500,000 and $1 million when he joined the department, appreciated significantly following the Pentagon’s agreement with xAI to integrate its AI capabilities into military systems. The transaction has raised concerns about potential conflicts of interest, as federal law prohibits officials from taking actions that benefit their own financial interests.
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