finance
Pentagon Official Emil Michael Reports Profit from Sale of xAI Investment
Emil Michael, the Pentagon's under secretary for research and engineering during the Trump administration, realized a profit of up to $24 million from selling a private investment in Elon Musk's xAI earlier this year. Michael oversees negotiations involving AI for the Department of Defense.
UN
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This included partnerships with private sector entities in AI, cybersecurity, and autonomous systems. The Department of Defense has increasingly relied on collaborations with tech companies to maintain technological superiority. The sale of an investment occurred amid growing scrutiny of financial dealings by government officials in tech-heavy sectors.
Federal ethics rules require disclosure of such transactions to avoid conflicts of interest. Involvement in AI negotiations underscores the intersection between public service and private investments in emerging technologies.
Implications The profit from the sale highlights ongoing concerns about insider advantages in government-tech relationships.
Affected parties include defense contractors, AI firms, and taxpayers funding these initiatives. Next steps may involve reviews by ethics watchdogs or congressional oversight committees to assess compliance with disclosure requirements. Development of AI models could influence future Pentagon contracts.
Companies have existing defense ties. Government ramps up AI investments to counter global competitors.
