$9 billion tech company once applied for preferential treatment because it was a ‘small business’

Neuralink has yet to respond to the incident in which it declared itself a “disadvantaged small business” shortly before its $9 billion valuation. Photo: Xinhua

Neuralink – Elon Musk’s technology company once declared itself a “disadvantaged small business” shortly before being valued at $9 billion after a large funding round.

A filing on April 24 with the US Small Business Administration (SBA) shows that Neuralink has requested to be recognized as a “disadvantaged business” (SDB). This designation is often given to companies whose owners are socially and economically disadvantaged, giving them priority access to federal government contracts.

The information was first published by MuskWatch. At the time of the filing, Elon Musk was leading the Trump administration’s Department of Government Efficiency (DOGE), where he pursued a policy of reducing the size of the federal bureaucracy and reviewing policies that prioritize DEI (diversity, equity, and inclusion).

The fact that a company backed by the world’s richest man is seeking preferential treatment for “disadvantaged businesses” has sparked controversy. The US Department of Justice has previously fined several companies for fraudulently claiming to be SDBs to take advantage of the policy.

Neuralink is developing a brain-computer interface (BCI) that allows humans to control machines with their thoughts. The initial goal is to help patients with motor paralysis communicate and control devices independently.

In early June, the company raised $650 million from major investors including ARK Invest, Sequoia Capital, Thrive Capital and Peter Thiel’s Founders Fund. With this capital, Neuralink aims to expand clinical trials and promote the connection between biological intelligence and artificial intelligence.