Billionaire Elon Musk’s Neuralink Claimed ‘Small Disadvantaged Business’ Status Shortly Before Raising Funds At Massive Valuation

The filing occurred just weeks before Neuralink raised $650 million in a funding round and expanded its clinical trials of a brain-computer interface to three countries.

Elon Musk’s brain-tech company Neuralink identified itself as a “small disadvantaged business” (SDB) in an April 24 filing with the U.S. Small Business Administration, just weeks before securing $650 million in funding at a $9 billion valuation. 

The SDB designation is intended for businesses owned and controlled by individuals who are socially and economically disadvantaged, and can offer preferential access to federal contracts, CNBC reported.

The filing came while Musk was leading the Trump administration’s Department of Government Efficiency (DOGE), which targeted cuts to federal agencies and diversity-related programs. 

Jared Birchall, a longtime Musk aide and Neuralink executive, was listed as the filing’s contact. The Department of Justice has previously fined companies for making false SDB claims.

Neuralink, which is developing a brain-computer interface (BCI) to assist people with severe paralysis, stated that the new funding will help expand access to its technology and develop additional devices. 

Last month, the company confirmed it had entered clinical trials in three countries, with five patients currently using its implant to control digital and physical devices with their thoughts. 

The system uses a chip that translates neural signals into commands sent to computers or phones.

In May, Neuralink received a significant boost when the U.S. Food and Drug Administration (FDA) granted its speech restoration device a “breakthrough” designation, which helps expedite the review process for technologies aimed at treating severe medical conditions. 

It’s the second time the company has earned that status, following a similar nod last year for its vision-restoring implant.

The momentum continued with a funding round that brought in big-name backers like ARK Invest, DFJ Growth, Founders Fund, Sequoia Capital, Thrive Capital, and others. 

On Stocktwits, retail sentiment for Musk-led Tesla was ‘bearish’ amid ‘low’ message volume, while sentiment for the SPDR S&P 500 ETF Trust (SPY) remained ‘neutral’ with ‘normal’ message volume.

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