Elon Musk’s neural interface technology company Neuralink, is now reportedly looking to raise around $500 million in a new funding round, aiming for a pre-money valuation of $8.5 billion. The company has initiated preliminary discussions with potential investors, though the terms of the deal have not been finalized yet, reports Bloomberg.
Since its inception in 2016, the company has secured over $680 million across several funding rounds. The most recent funding happened in August 2023, when the company raised $323 million in a Series D round led by Peter Thiel’s Founders Fund. At that time, the company was estimated to be valued at $5 billion.
The neurotechnology company mainly focused on developing implantable brain-computer interfaces (BCIs). The company’s primary aim is to make devices that enable direct communication between the human brain and external technologies, like computers and artificial intelligence systems. Its flagship device – the N1 implant – consists of ultra-thin threads embedded with electrodes that detect and transmit neural signals. Notably, the device is still in the testing phase.
In fact, Musk’s ambitions for Neuralink extend far beyond assisting paralysis patients. Musk has expressed hopes that Neuralink’s brain-chip technology could potentially address conditions such as obesity, autism, depression, and schizophrenia.
Neuralink initiated its first human clinical trials in early 2024 after receiving FDA approval in May 2023. The first human recipient (Noland Arbaugh, a 29-year-old quadriplegic who suffered a spinal cord injury) of the implant was able to control a computer cursor and perform various tasks using only neural signals.
After this, Neuralink proceeded with a second participant named Alex in August 2024. Following the implantation, Alex demonstrated the ability to design 3D objects using CAD software and play complex video games. Earlier this year, the company also completed its third human brain-chip implant and announced plans to carry out about 20 to 30 more implants in 2025.
However, despite its technical advancements, the company faces several challenges, including regulatory scrutiny and ethical concerns related to its animal testing practices. Even the company has come under investigation by US authorities for potential violations in its handling of animal research. Additionally, the US Securities and Exchange Commission (SEC) also reopened an investigation into the company in December 2024, focusing on safety claims related to its brain chip technology.
Meanwhile, the latest development comes at a time when Neuralink’s prominent rival, Precision Neuroscience, recently received ‘Breakthrough Device’ designation from the US Food and Drug Administration (FDA) for its brain-computer interface (BCI) system.
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