Emil Michael, the Pentagon's under secretary for research and engineering, reportedly made a profit of up to $24 million from selling his stock in Elon Musk's AI company, xAI, which he held while overseeing AI negotiations for the defense department. Michael's initial investment in xAI was valued between $500,000 and $1 million, and he sold his shares on January 9, 2025, after the Pentagon announced two agreements with the firm to utilize AI technology. The substantial increase in his stock value, ranging from 400% to 4,800%, has raised ethical concerns, as federal law prohibits officials from actions that could benefit their financial interests. Richard Painter, a former ethics lawyer, criticized Michael's situation, suggesting that it could constitute a criminal violation. Despite these concerns, the Pentagon stated that Michael was in compliance with all ethics regulations. Michael, who has a background in business and a prior role at Uber, has been a prominent advocate for AI in military applications, aligning with Secretary of Defense Pete Hegseth's push for AI integration within the military.