Frustrated With Neuralink Employees, Elon Musk Aims To Invest In Synchron Inc For Brain Implant Technology

Elon Musk has approached brain chip implant developer Synchron Inc. (photo: doc. neuralink)

JAKARTA - Elon Musk has approached brain chip implant developer Synchron Inc for potential investment as his own company, Neuralink, is catching up in the race to connect the human brain directly to machines.

Musk contacted Synchron founder and chief executive Thomas Oxley in recent weeks to discuss a possible deal, a source familiar with the matter told Reuters. It is unclear whether any of the transactions involved ties or collaborations between Synchron and Neuralink.

"Synchron, based in the Brooklyn, New York City area, is ahead of Neuralink in the process of winning regulatory clearance for its devices," the source said. It has not yet been decided whether they will accept the investment and there is no definite agreement, the source added. This source specifically requested anonymity as this matter is confidential.

Representatives for Musk and Neuralink did not respond to requests for comment. A Synchron spokesman also declined to comment.

The approach comes after Musk, who is also chief executive of electric car maker Tesla Inc and owner of rocket developer SpaceX, expressed frustration with Neuralink employees over their slow progress. That frustration was not conveyed to Oxley when Musk reached out to him.

It's unclear where Neuralink stands in its application with the US Food and Drug Administration (FDA) to initiate human trials. An FDA spokesman did not immediately respond to a request for comment.

Musk said in a 2019 public presentation that Neuralink, which he launched in 2016, aims to receive regulatory approval by the end of 2020. He later told a Wall Street Journal conference in late 2021 that he hopes to start human trials this year.

Founded in 2016, Synchron has developed brain implants that do not require cutting the skull to install, unlike Neuralink products. Its goal is to help paralyzed patients operate digital devices with their own minds.

Synchron passed a major milestone last month by implanting its device in a patient in the United States for the first time. It received FDA clearance for human trials in 2021 and has completed studies on four people in Australia.

Synchron has about 60 employees and has so far raised about $65 million from investors, according to market research firm Pitchbook.

Neuralink is larger, with 300 employees divided between San Francisco and Austin, Texas. They have raised $363 million from investors so far, according to Pitchbook.

Only two of Neuralink's eight founders remain at the company among them Musk and implant engineer Dongjin "DJ" Seo, who have leadership roles. Max Hodak, who stepped down as President of Neuralink last year, is now an investor in Synchron.

Musk has approached competitors Neuralink in the past. In 2020, he held discussions with brain technology company Paradromics Inc, according to three people familiar with the matter. Musk later left the conversation.