Elon Musk’s cutting-edge health company, Neuralink, labeled itself a “small disadvantaged business” in a federal filing, a strange move for a company that was soon after valued at $9 billion.
The filing, submitted to the U.S. Small Business Administration (SBA) in April, seeks a special designation. According to the SBA, this status is meant for companies owned by people who are “socially and economically disadvantaged.” This label can give businesses preferential treatment when competing for federal government contracts. The Department of Justice has previously fined companies for making false claims about having this status.
The claim is puzzling, given that Musk is the wealthiest person in the world, leading giants such as Tesla and SpaceX. In early June, shortly after the filing, Neuralink closed a massive $650 million funding round with notable investors, including Peter Thiel’s Founders Fund. This fresh capital shot the company’s valuation up to an incredible $9 billion, a figure that doesn’t exactly scream “economically disadvantaged.”
The timing also raises eyebrows. When Neuralink filed the paperwork, Musk was also heading up the Trump administration’s Department of Government Efficiency (DOGE). In that role, Musk worked to reduce federal spending, including funding for diversity, equity, and inclusion (DEI) initiatives, which often align with the same principles as the SDB designation.
Neuralink is developing a brain-computer interface to help people with severe paralysis. Jared Birchall, who manages Musk’s fortune and is a Neuralink executive, was listed as the contact person on the filing but did not immediately comment on the matter.
