"Coincidentally" oversees AI field work, U.S. Deputy Defense Secretary cashes out huge amounts of AI stocks

MarsBitNews · 2026-04-10T10:54:29+00:00

Deputy Secretary of Defense Michael made a profit of up to $24 million from unlisted xAI stock, sparking controversy over conflicts of interest. Although he was told to sell the stock to avoid conflicts, he still held shares during the partnership with xAI and only sold them as late as January of this year.

MarsBitNews

2026-04-10 10:54:29

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Mars Finance News April 10 – A report released this month by the U.S. Office of Government Ethics shows that U.S. Deputy Secretary of Defense Emily Michael profited up to $24 million by cashing out of unlisted shares in the Department of Defense’s partner company, xAI, and he “happened” to oversee the artificial intelligence (AI) sector.
According to The Guardian of the UK on April 9, Michael took office in May 2025, responsible for negotiating with AI companies and promoting large-scale use of AI by the Department of Defense.
Documents show that in March 2025, Michael reported holding between $500,000 and $1 million worth of shares in xAI, an AI company founded by entrepreneur Elon Musk.
On January 9 of this year, he sold these shares, earning between $50 million and $250 million.
The report states that xAI is not publicly listed, and it is unclear how Michael acquired the shares or to whom he sold them.
Michael claims to hold xAI shares through Texas-based “KQ Partners” LLC.
While Michael held shares in xAI, the Pentagon announced two cooperation agreements with the company.
The first agreement was signed last July.
On December 18 of last year, the Office of Government Ethics informed Michael that he needed to sell his xAI shares to avoid conflicts of interest.
However, four days later, the Pentagon announced a second agreement with xAI.
Michael did not sell these shares until January 9 of this year.
(Xinhua)

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