Elon Musk's Neuralink has recently come under scrutiny following revelations about its classification as a "small disadvantaged business" (SDB) with the Small Business Administration (SBA).
This designation was reportedly filed shortly before the company secured a substantial financing round, valuing it at a staggering $9 billion.
As reported by Breitbart, MuskWatch's investigation revealed that Neuralink, the brain-computer interface company founded by Elon Musk, filed for the SDB status in April. This move preceded a $650 million funding round in early June, which significantly boosted the company's valuation.
The SBA's criteria for SDB status require that a company be at least 51 percent owned and controlled by individuals who are both socially and economically disadvantaged. This status can provide businesses with preferential access to federal procurement opportunities.
The filing, dated April 24, listed Jared Birchall, a Neuralink executive and manager of Musk's family office, as the contact person. This development occurred during Musk's tenure at the Trump administration's Department of Government Efficiency (DOGE), where he was focused on reducing the size of federal agencies.
Neuralink has attracted investment from notable firms such as ARK Invest, Peter Thiels Founders Fund, Sequoia Capital, and Thrive Capital. The company has stated that the new capital will be used to expand its technology to more patients and develop devices that enhance the connection between biological and artificial intelligence.
The decision to classify Neuralink as an SDB has raised questions, particularly given Musk's status as the world's wealthiest individual and his leadership of several high-profile enterprises, including Tesla, SpaceX, xAI, and The Boring Company. In 2022, Musk also spearheaded the $44 billion acquisition of Twitter, which he later rebranded as X and merged with xAI.
During Musk's leadership at DOGE, the initiative focused on reducing government spending, particularly targeting agencies that prioritized diversity, equity, and inclusion (DEI). In February, Musk and DOGE announced significant cuts to the Department of Education's funding, which would have supported DEI-related training grants.
This move aligns with conservative principles of limited government and fiscal responsibility, reflecting a broader agenda to streamline federal operations and reduce unnecessary expenditures.
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