Emil Michael serves as the Under Secretary of Defense for Research and Engineering under the Trump administration, where he oversees negotiations with AI companies and promotes the expansion of AI utilization within the Department of Defense (currently the "Department of War"). In a filing from March 2025, he listed his xAI holdings at between $500,000 and $1 million.
NewsEmil MichaelU.S. Department of DefensexAI
US Defense Department AI Under Secretary Sold Up to $25 Million in xAI Stock During Pentagon Contract Period
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According to filings with the Office of Government Ethics (OGE), Michael sold xAI shares held via KQ Partners for between $5 million and $25 million on January 9, 2026. This represents an increase in valuation of 400% to 4,800%.
During the period he held these shares, the Department of Defense selected Grok as one of four commercial AI providers in July 2025 and announced a new contract with xAI on December 22. Although Michael received a certificate from the OGE on December 18 to sell the shares in compliance with conflict-of-interest laws, the actual sale did not take place until January 9.
Richard Painter, a former White House ethics lawyer, pointed out that it is generally a criminal violation for high-ranking government officials to engage in duties that bring them personal economic benefit. In a statement, the Department of Defense said it maintains a multi-layered ethics framework and stated that Michael is "in full compliance with all ethics laws and regulations."
Source: US defense official overseeing AI reaped millions selling xAI stock（HN 58pt・11コメント） (HN Search (backfill), 2026-04-10)