Emil Michael, the Pentagon official responsible for military artificial intelligence policy, has sold his holdings in the AI company Perplexity for an amount between $5m and $25m. This sale in June follows an earlier divestment in January from Elon Musk’s xAI, which yielded profits of up to $24m.
Financial disclosures indicate that Michael had previously received a personal loan from Perplexity, valued between $250,000 and $500,000, at an interest rate of 4.57% in 2024. He also served on a Perplexity advisory board before stepping down upon entering federal service.
Beyond AI firms, Michael's financial disclosures also show he sold holdings in Brex LLC, a financial software company, in April for at least $5m. His Brex holdings had increased significantly during his government tenure, from a maximum of $750,000 reported in March 2025.
Richard Painter, a former White House ethics lawyer, stated that while Michael's ownership in an AI company might not violate the law, it would raise questions due to appearances. A Pentagon spokesperson affirmed that Michael and other defense officials are in full compliance with ethics laws and regulations.