Neuralink raises $650M as rival Paradromics joins brain-implant race with first human test

Elon Musk’s Neuralink just raised $650 million as it begins clinical trials for its brain implant, which aims to let people control devices with their thoughts. Meanwhile, rival startup Paradromics completed its first human test, intensifying the race to bring brain-computer interfaces to real-world use.

Elon Musk's Neuralink said on Monday that it had raised $650 million in its latest funding round as its brain implant device enters clinical trials.

"This funding helps us bring our technology to more people, restoring independence for those with unmet medical needs and pushing the boundaries of what's possible with brain interfaces," Neuralink said.

It has started clinical trials in three countries for the device, which has a chip that processes neural signals that can be transmitted to computers or phones.

According to the company, five patients with severe paralysis are using Neuralink to control digital and physical devices with their thoughts.

Neuralink received the US Food and Drug Administration's "breakthrough" tag for its speech restoration device last month. It had received the same tag for its vision-restoring device last year.

According to its website, the health regulator's breakthrough devices program is intended to provide patients and health care providers with timely access to medical devices by speeding up development, assessment, and review.

Musk said last Wednesday that he was leaving his role as special adviser to US President Donald Trump to return his focus to his companies, including Tesla, SpaceX, xAI, Neuralink, and social media platform X.

According to media reports on Monday, Morgan Stanley is shopping for a $5 billion debt package for xAI. The artificial-intelligence company is seeking a valuation of $113 billion in a share sale worth $300 million.

Neuralink closed its funding round with participation from key investors including ARK Invest, DFJ Growth, Founders Fund, G42, Human Capital, Lightspeed, QIA, Sequoia Capital, Thrive Capital, Valor Equity Partners and Vy Capital, the company said.

Semafor reported last month that the startup had raised $600 million in a deal, which valued it at $9 billion before the new cash.

Paradromics test brain implant in a human

Paradromics, a brain-computer interface startup, has taken an early step toward human trials by briefly implanting its Connexus device in a patient during epilepsy surgery.

As reported by Wired, the device was inserted into the temporal lobe, the brain part near human ears. It was there for about 10 minutes before being removed. This allowed researchers to confirm the device could record brain signals.

The patient had consented as part of their planned procedure, and that created a rare, low-risk opportunity to test the technology. Connexus is designed to help people with conditions like ALS, stroke, or spinal cord injuries regain communication abilities.

It does this by decoding brain activity linked to speech and movement. This activity is then translated into text, speech, or cursor movements.

The company is now aiming for a long-term clinical trial with patients who have paralysis, hoping to match or exceed the success seen by other BCI teams in decoding intended speech.