Technology
Pentagon AI policy official Emil Michael sells multimillion-dollar stake in AI firm Perplexity
Financial disclosures reveal the defense official sold shares valued between $5m and $25m, prompting renewed scrutiny over potential conflicts of interest.
The short version
- Emil Michael, who oversees military artificial intelligence policy for the Pentagon, sold his holdings in AI company Perplexity in June for between $5m and $25m.
- The transaction follows previous high-yield sales of Michael's stakes in Elon Musk's xAI and the financial software firm Brex.
- The Pentagon maintains Michael is fully compliant with ethics rules, while an ethics expert argued he should have fully divested before taking office.
Key facts
- Emil Michael sold his equity holdings in Perplexity for between $5m and $25m in June, according to federal financial disclosure records.[The Guardian]
- Michael previously served on Perplexity's advisory board before stepping down upon entering government service, and he had received a personal loan from the company of between $250,000 and $500,000 in 2024.[The Guardian]
- Earlier in the year, Michael realized substantial returns by selling stakes in xAI with gains between 400% and 4,800%, as well as holdings in Brex for at least $5m.[The Guardian]
- A Pentagon spokesperson stated that Michael is in full compliance with ethics regulations, citing a rigorous ethics framework.[The Guardian]
- Ethics expert Richard Painter noted that while holding the stock may not violate the law, standard practice in past administrations would have required full divestment before entering government to avoid appearance issues.[The Guardian]
What remains uncertain
- It is unknown whether Michael made a net profit on the Perplexity sale or whether the transaction involved vested or unvested shares, due to the broad financial ranges used in federal filings.[The Guardian]