July 18, 2025 — Elon Musk’s neurotechnology firm, Neuralink, labeled itself a “small deprived enterprise” (SDB) in a federal submitting with the U.S. Small Enterprise Administration (SBA) on April 24, simply weeks earlier than securing a $650 million funding spherical that valued the corporate at $9 billion. The submitting, first reported by MuskWatch, has sparked controversy attributable to Neuralink’s possession by Musk, the world’s wealthiest particular person with a internet price of roughly $424.7 billion, and questions on its eligibility for the SDB designation.
In line with the SBA, an SDB should be a minimum of 51% owned and managed by people who’re each socially and economically deprived, with a internet price not exceeding $850,000 (excluding main residence). Neuralink’s submitting, signed by govt Jared Birchall, who additionally manages Musk’s household workplace, claims this standing, doubtlessly granting preferential entry to federal procurement alternatives. The Division of Justice has beforehand fined corporations for false SDB claims, elevating questions concerning the legitimacy of Neuralink’s designation.
Neuralink, based in 2016 by Musk and a group of scientists, develops brain-computer interface (BCI) know-how to help people with extreme paralysis and restore imaginative and prescient, with its Blindsight gadget receiving FDA “Breakthrough System” standing in September 2024. The corporate, now based mostly in Nevada, has been self-certifying as an SDB in all 11 of its filings on SAM.gov since 2017, regardless of Musk’s majority possession and a valuation that soared after investments from ARK Make investments, Founders Fund, Sequoia Capital, and Thrive Capital.
The timing of the April submitting coincided with Musk’s position main the Trump administration’s Division of Authorities Effectivity (DOGE), the place he pushed to chop federal variety, fairness, and inclusion (DEI) applications, together with funding for minority-owned companies. This has fueled criticism on X, with customers like @rdd147 alleging potential illegality in Neuralink’s submitting, whereas @gc22gc famous the irony of the declare throughout Musk’s DOGE tenure. Others, like @CNBCtech, amplified the story, reflecting widespread debate.
Critics argue that Musk, a South Africa-born billionaire, doesn’t meet the SBA’s standards for social or financial drawback. A 2018 letter to the SEC confirmed Musk’s majority possession, although Neuralink’s personal standing obscures full particulars. The corporate has not commented, and Birchall didn’t reply to inquiries. There isn’t any proof Neuralink has secured federal contracts, however its SDB standing could have been used to hunt grants or loans.
Be a part of the heated dialogue on X about Neuralink’s controversial submitting.