War & the Pentagon

Pentagon’s AI chief sold his stake in Musk’s xAI for up to $25 million after Pentagon deals with the firm

$5M to $25M from selling his xAI stake (ethics filings, via the Guardian)

Emil Michael, the under secretary of defense for research and engineering who oversees the Pentagon’s AI dealings, declared an xAI stake worth $500,000 to $1 million in March 2025 and sold it on January 9, 2026 for $5 million to $25 million, according to ethics filings reported by the Guardian. While he held it, the Pentagon picked xAI’s Grok as one of four AI providers (July 2025) and announced a new xAI agreement on December 22, 2025, four days after he received a divestiture certificate. Later filings show he also sold Perplexity stock for $5 million to $25 million in June 2026 and Brex holdings for at least $5 million in April 2026. No finding of a violation has been reported; how he got the private xAI shares, and who bought them, is not public.

Their response: Pentagon spokesperson Sean Parnell said Michael was “in full compliance with all ethics laws and regulations. Any claims otherwise are false.”

Sources: The Guardian (Apr. 9, 2026) · The Guardian (Sept. 1, 2026)

Army’s No. 2 civilian came from Anduril and kept up to $500,000 of its stock

Up to $500,000 of Anduril stock kept (his filing, via the Intercept)

Michael Obadal, a senior director at drone and software maker Anduril until 2025, told ethics officials in an April 11, 2025 letter that as under secretary of the Army he would keep his vested Anduril shares, which he valued at $250,000 to $500,000, The Intercept reported. He was confirmed and is the Army’s second-ranking civilian; in March 2026 the Army gave Anduril an agreement worth up to $20 billion. When Army Secretary Dan Driscoll submitted his resignation on August 31, 2026, trade press noted Obadal could become acting secretary. Whether he has since sold the stock, or took part in any Anduril decision, is not reported.

Their response: Per The Intercept, his ethics letter pledges that he will stay out of matters affecting Anduril unless he is granted a waiver. Sen. Elizabeth Warren called the arrangement a “textbook conflict of interest.”

Sources: The Intercept (May 1, 2025) · The Intercept (May 8, 2025) · DefenseScoop (Aug. 31, 2026) · DefenseScoop (Mar. 14, 2026)

Army gave Anduril a contract worth up to $20 billion; its founder is a top Republican fundraiser

Up to $20B over ten years (a ceiling, not money spent)

The Pentagon announced on March 13, 2026 an Army enterprise agreement with Anduril Industries worth up to $20 billion over ten years for counter-drone command software and hardware; the Guardian describes it as sole-source. Founder Palmer Luckey has given $5.9 million to Republicans since 2017 by OpenSecrets’ count and has hosted fundraisers for at least 20 Republican politicians, including Trump, according to invitations the Guardian obtained. No source shows the award was made in return for donations, and the $20 billion is a ceiling, not money spent.

Their response: Luckey declined an interview, writing: “I am not going to help you guys make money.” An Army task force official said the deal creates “a common technological backbone” for drone defense.

Sources: DefenseScoop (Mar. 14, 2026) · The Guardian (Aug. 6, 2026)

Pentagon’s No. 2 picked his own trust’s lawyer to represent the department in a $550 million minerals deal

$550M Pentagon stake and loan in MP Materials

The American Prospect reported in August 2026 that Alan Waldenberg, who manages Deputy Defense Secretary Stephen Feinberg’s irrevocable trust and is lead outside counsel to Cerberus Capital Management, the private equity firm Feinberg founded, confirmed he represented the Defense Department in its July 2025 deal to take a $400 million stake in MP Materials and lend it $150 million, and said Feinberg chose him. ProPublica reported in March 2026 that at least four Cerberus-owned companies were among more than 2,000 firms given awards under the Golden Dome missile-defense program, which Feinberg’s office oversees, and that the Pentagon let him keep buying tax, accounting and health-coverage services from Cerberus with no end date. Feinberg says he divested; Cerberus has no known direct stake in MP Materials, and the Golden Dome award amounts are not public.

Their response: Defense Department statement to the Prospect: its Office of Strategic Capital “maintains a rigorous, multi-layered ethics framework that includes a detailed screening process and operates in full compliance with all federal ethics laws and regulations.” Waldenberg said his role had been “completely discussed” with the department’s ethics staff. A Cerberus spokesperson told ProPublica: “Mr. Feinberg divested his stake in Cerberus and any funds that it manages, and is not involved with the operations of Cerberus or any of its portfolio companies in any way.”

Sources: The American Prospect (Aug. 21, 2026) · ProPublica (Mar. 5, 2026)

Army made Palantir, Meta and OpenAI executives officers while their firms won Pentagon deals

Palantir’s Army deal: up to $10B over ten years (a ceiling)

On June 13, 2025 the Army swore in four technology executives as part-time Army Reserve lieutenant colonels in a new unit, Detachment 201: Palantir’s chief technology officer, Meta’s chief technology officer, OpenAI’s chief product officer and a former OpenAI research chief. Three days later the Pentagon announced a $200 million prototype agreement with OpenAI, and on July 31, 2025 the Army unveiled a ten-year software agreement with Palantir worth up to $10 billion. The executives kept their company jobs, and three more were commissioned in June 2026. No source shows the officers took part in those awards.

Their response: The Army said the officers “work on targeted projects to help guide rapid and scalable tech solutions to complex problems.” On the Palantir deal an Army official said “robust competition is still a thing.”

Sources: U.S. Army release (June 13, 2025) · DefenseScoop (June 17, 2025) · DefenseScoop (July 31, 2025) · DefenseScoop (June 11, 2026)

Hegseth put Musk and Anduril’s founder, both Republican donors with Pentagon contracts, on a future-war panel

On September 30, 2026 Defense Secretary Pete Hegseth announced “Project Meridian”, a Pentagon study of the future of warfare co-led by Elon Musk with Anduril founder Palmer Luckey and Newt Gingrich, and run by under secretary Emil Michael. Musk’s SpaceX and Luckey’s Anduril both hold large Pentagon contracts and would sell the kinds of weapons the project is to recommend. Musk spent more than $290 million on the 2024 election, according to federal filings, and his America PAC is spending millions in 2026 Senate races; Luckey co-hosted a $50,000-a-head Senate fundraiser on August 22, 2026. Outside advisers from industry are common at the Pentagon; no ethics waivers or recusals were reported.

Their response: “The Pentagon did not immediately respond to a request for comment,” the Guardian reported. Hegseth’s memo said the U.S. “must anticipate future operational environments.”

Sources: The Guardian (Sept. 30, 2026) · The Guardian (Oct. 1, 2026) · CNN, on FEC filings (Feb. 1, 2025)

Hegseth cut the weapons-testing office to 30 staff after it put Golden Dome on its oversight list

$1.2T: CBO’s 20-year cost estimate for Golden Dome

In late April 2025 the Pentagon’s independent testing office circulated a memo placing the Golden Dome missile shield under its oversight, as the law requires for major programs; days later Elon Musk’s DOGE team, whose SpaceX was competing for Golden Dome work, asked to meet the office, CNN reported. On May 28, 2025 staff were told the office would shrink from more than 100 people to 30 and lose its contractors. Officials told CNN they believed the aim was to avoid independent scrutiny; the Pentagon denies any connection, so the motive is alleged, not established. The Congressional Budget Office has since put Golden Dome’s 20-year cost at about $1.2 trillion against Trump’s $175 billion.

Their response: Pentagon spokesman Sean Parnell: “This decision has nothing to do with Golden Dome and everything to do with rooting out redundancies.”

Sources: CNN (May 30, 2025) · BBC News (May 13, 2026)

State Department declared an emergency to push $16.5 billion-plus in Gulf arms sales past Congress

$16.5B+ in sales waived past Congress (press tally)

On March 19, 2026, three weeks into the Iran war, Secretary of State Marco Rubio invoked the emergency clause of the Arms Export Control Act to waive congressional review of about a dozen sales to the United Arab Emirates, Kuwait and Jordan, including a $4.5 billion Lockheed Martin radar for the UAE. The top Democrat on House Foreign Affairs said only one of the cases involved equipment ready for immediate export. The UAE is separately a major investor in Trump family ventures (see the crypto entries); no reporting ties the waiver to that. Earlier administrations used the same waiver: Trump’s first in 2019 and Biden’s for Ukraine and Israel.

Their response: The State Department notice says the secretary “has determined and provided detailed justification that an emergency exists” requiring the immediate sale. Rep. Gregory Meeks: “That is not an emergency. That is an abuse of authority.”

Sources: State Department notice, transmittal 26-41 (Mar. 19, 2026) · Rep. Gregory Meeks statement (Mar. 19, 2026) · Responsible Statecraft (Apr. 9, 2026)

Navy secretary, a Trump fundraiser with no military service, was fired amid a reported ethics inquiry

$12M reportedly raised at his 2024 dinner for Trump (Guardian)

John Phelan, a Palm Beach investor who hosted an August 2024 dinner for Trump at his Aspen home that reportedly raised $12 million, became Navy secretary in 2025 with no prior military service. He was ousted on April 22, 2026, during the naval blockade of Iran, after clashes with Pete Hegseth and Deputy Secretary Stephen Feinberg over control of shipbuilding. People familiar with the matter told the Guardian there was also reportedly an ongoing ethics investigation into the Navy secretary’s office; its subject and outcome are not public.

Their response: Trump wrote that Phelan “did an outstanding job” and that he “would certainly like to have him back within the Trump Administration sometime in the future.”

Sources: The Guardian (Apr. 23, 2026) · CNN (Apr. 22, 2026) · The Guardian (Oct. 4, 2024)

Trump said the U.S. would “assume total control” of Iran’s oil and gas, “much like” Venezuela

On June 11, 2026, with a ceasefire fraying, Trump posted that the United States “will be taking Kharg Island and other oil infrastructure points, and assume total control of their oil and gas markets, much like we have with Venezuela.” Kharg handles about 90% of Iran’s oil exports. Hours later he said a peace deal was near and told Fox News he did not know if “America has the stomach” for seizing the island; it has not been taken. At his January 3, 2026 press conference on the Maduro raid he had said Venezuela’s oil industry was stolen “from us”, a claim analysts say has no legal basis.

Their response: Trump described the Venezuela arrangement as “working out brilliantly for both Venezuela and the United States of America.”

Sources: The Guardian (June 11, 2026) · The Guardian (Jan. 4, 2026)