Elon Musk’s Neuralink Obtains ‘Disadvantaged Business’ Status Before Securing $9 Billion Valuation

The technology firm Neuralink, founded by Elon Musk, classified itself as a “small disadvantaged business” (SDB) in a federal filing with the U.S. Small Business Administration (SBA), preceding a financing round that valued the company at $9 billion. This filing occurred during a period when Musk held a position leading the Department of Government Efficiency (DOGE).

Neuralink specializes in developing a brain-computer interface (BCI) system, with an initial focus on assisting individuals suffering from severe paralysis in regaining some level of independence. BCI technology essentially translates brain signals into commands that enable users to control external technologies through thought alone.

The SBA designation of SDB indicates that a company is at least 51% owned and controlled by one or more individuals who are both socially and economically disadvantaged. Such a designation may grant businesses preferential access to federal procurement opportunities, as stated on the SBA’s website.

Musk, recognized as the world’s wealthiest individual, is also CEO of Tesla and SpaceX, in addition to heading artificial intelligence startup xAI and tunneling venture The Boring Company. In 2022, Musk led a $44 billion acquisition of Twitter, which he later rebranded as X before merging it with xAI.

Jared Birchall, an executive at Neuralink, was listed as the contact person for this filing in April. Birchall, who also oversees Musk’s financial affairs as head of his family office, did not immediately respond to a request for comment.

Neuralink, which is incorporated in Nevada, concluded a $650 million funding round in early June at a $9 billion valuation. ARK Invest, Peter Thiel’s Founders Fund, Sequoia Capital, and Thrive Capital were among the investors. The additional capital will reportedly be utilized to bring Neuralink’s technology to more patients and develop new devices that enhance the connection between biological and artificial intelligence.

Under Musk’s leadership at DOGE, the initiative targeted government agencies that prioritized diversity, equity, and inclusion (DEI). For instance, in February, DOGE and Musk announced the cancellation of hundreds of millions of dollars worth of funding for the Department of Education intended for DEI-related training grants.