Neuralink’s Small Business Classification Raises Questions
Elon Musk’s brain chip company, Neuralink, has reportedly filed as a “small business” with the Small Business Administration (SBA) just before securing a funding round that valued the company at $9 billion.
According to reports, Neuralink, founded by Musk, received the designation of “small adverse business” in an April filing with the SBA. This application came shortly before the company successfully closed a $650 million funding round in early June. The new valuation of Neuralink, a Brain-Computer Interface (BCI) company, is noteworthy.
The SBA provides the “Small Disadvantaged Business” (SDB) designation to companies that are at least 51% owned and managed by individuals deemed socially and economically disadvantaged. This classification enhances eligibility for federal contract opportunities.
In the April 24 filing, Jared Birchall, an executive at Neuralink, was listed as the manager of the family office managing Musk’s funds. Intriguingly, this filing occurred while Musk was involved with the Trump administration on government efficiency initiatives.
Neuralink has attracted substantial investments from notable firms like Ark Invest, Sequoia Capital, Peter Thiel’s Founders Fund, and Thrive Capital. The company mentioned that the fresh funding would aid in expanding its technology reach and developing devices that forge deeper connections between biological and artificial intelligence.
The choice to classify Neuralink as an SDB is puzzling, especially considering Musk’s status as the richest person globally and his leadership over multiple high-profile companies, including Tesla and SpaceX. Last year, he also completed a $44 billion acquisition of Twitter, which has since been renamed X.
During Musk’s leadership in government efficiency, the focus was placed on initiatives that promote diversity, equity, and inclusion. Earlier this year, it was reported that funds intended for the Department of Education, aimed at DEI training grants, were drastically reduced.
