Neuralink, the brain-computer interface company founded by Elon Musk, reached a valuation of $5 billion after gaining approval for human trials, increasing by over 150% in less than two years.
Neuralink, the American neurotechnology company dedicated to the development of brain-computer interfaces, founded by Elon Musk, reached a valuation of $5 billion in private share transactions, according to several sources interviewed by Reuters.
The startup of billionaire Elon Musk achieved this milestone thanks to the recent approval by US regulators to begin the human trials phase.
Neuralink Valuation Has Increased by Over 150% in Less Than Two Years
Although some experts have stated that it may take several years for the company to obtain regulatory approval for commercial use, many investors are optimistic about the company’s potential, especially at a time when cutting-edge technology like artificial intelligence has become the talk of the town, thanks to its numerous advantages.
According to Reuters, Neuralink’s valuation increased by 150% in less than two years. In the middle of 2021, the company’s valuation was $2 billion, a modest figure compared to the $7 billion ($55 per share) offered by some investors in the private market after the approval of human trials. Reuters could not confirm whether the seller who made the $7 billion share offer was able to close the deal.
Sim Desai, CEO of Hiive, an online platform for trading shares, pointed out that the demand for Neuralink shares has been “enormous”, valuing them at around $4.5 billion. However, other biomedical experts like Arun Sridhar believe that this valuation is exaggerated and unjustified due to the early stage of the company’s research.
Investors Are Betting on Elon Musk and His Ambitions with Neuralink
Many investors are not only betting on Neuralink as an innovative technology company but also on its creator, Elon Musk, who has so far managed to create multiple companies from scratch and turn them into technological giants capable of outperforming the largest existing companies.
For example, Tesla, one of Musk’s companies with less than 20 years in the automotive market, has far exceeded the market capitalization of two of its biggest competitors, Ford and GM, recording net income exceeding $12.6 billion during 2023.
Therefore, Musk’s grand ambitions with Neuralink may be the biggest attraction for investors, as the electric car magnate has repeatedly expressed his desire to use the new chips in the treatment of diseases such as autism, depression, and schizophrenia. Not to mention his claims of being able to cure obesity, enable web browsing, and perhaps even telepathy.
Will these chips fulfill all of Elon Musk’s claims? While it is impossible to provide a definite answer, one thing is certain: although his ideas may appear incredible and even seemingly impossible in the short term, the journey of the company is bound to be incredibly fascinating.
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Source: https://www.coinspeaker.com/elon-musk-neuralink-2-billion-5-billion/