The startup disclosed this funding round through a post on Musk's social network platform, X (formerly known as Twitter). The investment initiative was spearheaded by Founders Fund, a venture capital firm supported by billionaire Peter Thiel. Neuralink stands as a prominent player in the expanding realm of brain technology enterprises. Fueled in part by Neuralink's prominent presence, investors have shown interest in numerous other startups exploring similar technologies.

Neurotechnology startups garnered $143 million in funding by June 26 of this year, according to data from PitchBook. This contrasts with $278.1 million in the entirety of 2022 and $518.9 million in 2021. One competitor, Synchron Inc., achieved a significant milestone by enrolling its first patient in a US clinical trial before Neuralink. Neuralink recently obtained approval from the US Food and Drug Administration to commence human clinical trials.

The company is working on a compact device that employs electrode-laden wires to establish a connection between the brain and a computer. The installation of this device necessitates the drilling of the skull. Musk's startup has faced scrutiny from animal rights organizations due to its experimentation on primates. Earlier this year, the US Transportation Department initiated an investigation into the company following claims from an animal advocacy group. The group suggested that Neuralink may not have adhered to proper procedures when shipping potentially hazardous materials, as revealed by obtained emails.