WASHINGTON DC — Emil Michael sold his shares in Perplexity in June 2025 for between $5 million and $25 million. The transaction occurred while he served as the top Pentagon official overseeing military artificial intelligence policy.

A Pentagon spokesperson addressed the transactions by stating that Michael and other defense officials are in full compliance with ethics laws and regulations. The spokesperson added that any claims otherwise are false. The department operates under a rigorous, multi-layered ethics framework, according to the spokesperson.

Ethics expert and former White House lawyer Richard Painter offered a different perspective on the timing of the sales. Painter said Michael’s ownership in an AI company would not be a violation of law but could create the appearance of a conflict. He noted that most administrations would have said get out of that stock before you start that job.

"He should have sold all interest in the company before he started working," Painter said. "That’s the way we would have done it back when I was working for president." Painter emphasized that the issue concerned the appearance of conflict rather than a legal breach.

Before joining the government, Michael held various roles in the technology sector. He was chief business officer at Uber from 2014 to 2017. He also served as a consultant at Brex and joined a Perplexity advisory board, stepping down from the latter upon entering federal service.

Michael’s financial activities extended to other tech firms as well. He reported in March 2025 that his Brex holdings were worth a maximum of $750,000. He subsequently sold holdings in Brex LLC in April 2025 for at least $5 million. Brex was acquired by Capitol One in April 2025.

Timeline

Emil Michael received a personal loan from Perplexity in 2024 of between $250,000 and $500,000 at an interest rate of 4.57%. Perplexity announced a contract with the US General Services Administration in November 2024. Emil Michael appeared on the podcast Sourcery in December 2024. The December 2024 episode of Sourcery featuring Emil Michael was sponsored by Brex.

Emil Michael sold his private investment in Elon Musk’s AI company xAI earlier in 2025 for a gain of between $4m and $24m. Emil Michael reported in March 2025 that his Brex holdings were worth a maximum of $750,000. Emil Michael appeared during a Senate armed services committee confirmation hearing in Washington DC on 27 March 2025. Emil Michael sold holdings in Brex LLC in April 2025 for at least $5m.

Why It Matters

The sale of equity stakes in artificial intelligence companies by the Pentagon’s top technology official places the transactions under scrutiny regarding ethical standards. Michael’s role involves overseeing military AI policy, a field where companies like Perplexity and xAI are active participants. The timing of the sales, occurring after his confirmation hearing and during his tenure, raises concerns about the intersection of private investment and public service.

The events described span from 2014 to 2025, reflecting Michael’s long-standing presence in the tech industry before his government service. The Pentagon maintains that its ethics framework ensures compliance, while external experts argue that divestiture prior to taking office is the standard practice to avoid even the appearance of impropriety. This case shows the ongoing debate over how best to manage potential conflicts of interest for officials moving between the technology sector and national security roles.