Is Neuralink Real, Or Is Becoming a Cyborg Basically a Pipe Dream?
Key takeaways
- The FDA has given Elon Musk’s brain chip venture, Neuralink, the go-ahead for human trials to take place
- The company has been under fire for alleged animal welfare issues and was previously rejected for human trials in 2022
- Neuralink’s value has now reached $5 billion thanks to secondary trades ahead of the FDA approval
Elon Musk has been working on a human brain chip implant to cure illnesses and disabilities. Does it sound like science fiction? Definitely, but it’s real — and the company made a big step forward yesterday after news that the FDA has finally given approval for clinical trials on humans to commence. Secondary trading has now put the company at $5 billion in value — let’s get into the details.
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What is Neuralink?
Neuralink is billionaire CEO Elon Musk’s answer to helping the blind see again and the paralyzed walk. It’s a medical device company that involves implanting a computer chip directly into people’s brains to stimulate neural activity. Musk has grand plans for the chips, called the Link, to be used to treat disabilities, mental health issues and even obesity.
Neuralink has been under fire lately for supposed animal research violations and struggled to get FDA approval for human trials, having first applied for them to take place in early 2022. Still, the US Food and Drug Administration rejected it due to concerns over the lithium battery and whether the device can be removed without damaging brain tissue.
But the big news is Neuralink has gotten the go-ahead from the FDA just over a year later — and the company’s value has skyrocketed as a result, despite the controversies.
What does it mean for investors?
Neuralink isn’t publicly traded yet, but the big announcement still added value to the company. In 2021 the company was valued at around $2 billion; now, privately executed trades have put the business at around $5 billion in value.
Musk’s main company, Tesla, also saw a share price boost. Tesla stock was up just over 3% after the announcement, with Tesla shares now having climbed over 100% since the start of the year.
Neuralink is still far from being commercially successful, but this considerable company valuation boost shows how valuable the new tech is if Neuralink can crack the code.
The bottom line
Neuralink has been dogged by controversy, but getting the ultimate gold standard of FDA approval for human trials shows the tech could be with us far sooner than we thought. And the investor reaction has been very positive, which suggests there’s a lot of room for Neuralink’s valuation to grow in the coming years.
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