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← Signal: State & Power

Pentagon's top AI policy official sold millions in stakes while overseeing military AI strategy

Confirmed1 source · Sep 1, 2026

Emil Michael, who leads Pentagon artificial intelligence policy, realized substantial profits from stock sales in multiple AI and tech companies during his federal service.

Pentagon's top AI policy official sold millions in stakes while overseeing military AI strategy
Image via The Guardian

What happened

Emil Michael, the Pentagon official overseeing military AI policy, sold his holdings in Perplexity, an AI-powered search engine, in June for between $5m and $25m. Earlier in 2025, he had profited up to $24m from sales of his stake in Elon Musk's xAI company, with gains reported between 400% and 4,800%. Financial disclosures also show Michael sold shares in Brex LLC in April for at least $5m, realizing gains of at least 473%. Michael had previously received a personal loan from Perplexity of $250,000 to $500,000 at 4.57% interest and served on its advisory board before entering federal service. He also appeared on a podcast episode in December sponsored by Brex while still invested in the company.

Context

Michael's position gives him direct influence over Pentagon AI policy at a time when he holds or held financial interests in multiple AI and technology companies. Perplexity secured a U.S. government contract with the General Services Administration in November, though the sources do not establish specific Pentagon ties. Michael's ethics agreement pledged he would not profit from unvested stock in Perplexity, but it is unclear which shares he sold. The disclosed financial gains raise questions about the potential alignment between his government role overseeing AI strategy and his private financial interests in AI companies. The Pentagon has defended Michael's compliance with ethics laws, but ethics experts quoted note that standard practice in other administrations would have been to divest entirely before taking such a position.

What's disputed

The Pentagon states Michael is in full compliance with ethics laws and regulations and denies any violations. Ethics experts suggest the appearance of conflicts, though they acknowledge no legal violation occurred. It is unclear whether Michael made a profit on the Perplexity sale due to the wide disclosure range. The sources do not establish whether Michael's holdings in these companies created material conflicts with his Pentagon duties.