Neuralink, the brain implant startup founded by Elon Musk, has seen a significant increase in its value over the past two years. Initially valued at nearly $2 billion in a private fundraising round, the company is now estimated to be worth around $5 billion based on recent privately executed stock trades, according to sources familiar with the matter.
The surge in valuation can be attributed to purchases made by bullish investors in recent months, particularly following Neuralink’s announcement on May 25th that U.S. regulators had approved a human trial for its brain chip. This positive development bolstered investor confidence and contributed to the company’s increased worth.
However, experts caution that securing commercial use clearance may still take several years. Kip Ludwig, a former program director for neural engineering at the U.S. National Institutes of Health (NIH), optimistically predicts that Neuralink will require at least another decade to successfully commercialize its brain implant. Additionally, Neuralink faces challenges related to ongoing federal probes into its animal research practices.
Nevertheless, following the approval of the clinical trial, Neuralink shares were privately marketed to investors at a valuation of $7 billion, equivalent to $55 per share, as mentioned in an email seen by Reuters. It remains uncertain whether the seller was able to find buyers at that price. The email cited the approval from the U.S. Food and Drug Administration (FDA) for the trial as a significant factor in making the deal more enticing.
Elon Musk has articulated ambitious goals for Neuralink, envisioning a future where the company’s chip enables both healthy and disabled individuals to undergo convenient surgical procedures at local facilities. These implants could potentially address various conditions, including obesity, autism, depression, and schizophrenia. Musk has even speculated on their potential for web-surfing and telepathy. However, a recent statement from a Neuralink executive suggests that, in the short term, the company’s more modest objectives involve helping paralyzed patients communicate through computerized text without the need for typing.
