Questions about conflicts of interest are intensifying around the Pentagon official in charge of military AI policy after a filing showed he sold off another valuable investment tied to the artificial intelligence industry in June 2026.
Here's what to know
Records reviewed by The Guardian show that Emil Michael, the Pentagon official overseeing military AI policy, sold his Perplexity shares in June 2026 for somewhere between $5 million and $25 million. The transaction can only be narrowed to a range since federal disclosure forms report values in broad bands rather than exact sums.
The paperwork does not specify whether the shares sold in June 2026 were vested. Michael's ethics agreement said he would not profit from unvested stock. That sale came after a separate January 2026 stock transaction involving xAI that reportedly yielded him as much as $24 million.
The filings also outline Michael's past ties to Perplexity, where he served on an advisory board before entering the federal service. The AI search engine company has reportedly sought a $30 billion valuation and provided Michael with a personal loan in the $250,000 to $500,000 range at 4.57% interest.
In November 2025, Perplexity announced a contract with the General Services Administration, although The Guardian reported that the records do not show a direct connection to the Pentagon.
Richard Painter, a former White House lawyer under President George W. Bush, told the outlet, "He should have sold all interest in the company before he started working. That's the way we would have done it back when I was working for president."
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
The disclosure raises concerns that personal financial gains tied to the AI boom could weaken public trust in decisions involving taxpayers, federal spending, and the future use of emerging tools.
More background
The Perplexity transaction is not the only one drawing scrutiny. Michael's disclosure also indicates that he sold Brex LLC holdings in April 2026 for at least $5 million. Since his March 2025 filing put that stake at no more than $750,000, the investment appears to have risen sharply in value during his time in government.
He has also been portrayed as the public face of the department's clash with AI company Anthropic, adding to unease about how closely his financial interests have overlapped with an industry he has helped oversee.
What's being done?
The Pentagon has defended its internal process.
A spokesperson said Michael and other defense officials "are in full compliance with ethics laws and regulations. Any claims otherwise are false." The spokesperson also said the department has "a rigorous, multi-layered ethics framework."
Disclosure requirements and ethics agreements are meant to head off conflicts before they turn into broader public controversies. In Michael's case, that included publicly listing his holdings for reporters and watchdog groups to examine and agreeing not to profit from unvested Perplexity stock.
Even so, ethics experts say transparency alone may not be sufficient in a fast-moving sector like AI, where valuations can jump quickly while officials remain in influential jobs.
Painter said, "Most administrations would have said get out of that stock before you start that job."
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
