The business of brains: is neuro-tech becoming the next big industry?

Elon Musk’s Neuralink has recently dominated headlines following the successful implantation of its first human brain chip in 2024. Often recognised as a world leader in brain-computer interface (BCI) technology, Neuralink is now valued between USD 5–7 billion. However, it is important to note that BCIs are not a new concept as they have been around for decades.

These tiny, sophisticated chips – no larger than a coin – enable direct communication between the brain and external computers by recording and decoding neural activity. They could solve some of the most pressing challenges in healthcare, revolutionizing both communication and cognitive functions.

However, as the sector moves beyond healthcare and paves the way for unprecedented innovation, it raises unsettling questions about the future and what it means to be human.

So, what does this mean for entrepreneurs and investors?

The current landscape

BCIs are not as new as they might seem. Clinical trials date back to the 1990s, and by 2006, scientists had already demonstrated how a brain implant could move a computer cursor. The rise of high-profile companies like Neuralink, combined with massive advances in electrode design, AI and machine learning, has dramatically accelerated progress in recent years.

It feels like the sector is now on the brink of a major breakthrough.

The industry is expanding quickly, and while Neuralink may be grabbing the headlines, it faces serious competition. Paradromics and Blackrock Neurotech have also developed BCIs designed to penetrate the cortex; the latter has implanted dozens of people since 2004. Meanwhile, Precision Neuroscience has developed a flexible electrode thinner than a human hair that rests on top of the cortex, and it launched its first human trials last year. Companies like Motif Neurotech are developing less invasive alternatives.

The business case for BCIs is becoming harder to ignore. Morgan Stanley currently values the market at USD 400 billion and forecasts a USD 1.9 billion in cumulative revenue over the next decade. There are huge opportunities for investors; venture capitalists are investing heavily in this sector, recognizing its potential across healthcare and human augmentation. The BCI landscape is diverse and evolving rapidly.

The medical potential of BCIs

BCIs are already offering groundbreaking solutions that can drastically improve the lives of patients with severe disabilities. Just last month, news broke of a paralyzed man who could hold, move and drop objects with a robotic arm simply by imagining himself doing so. Until now, devices have only worked for up to two days at a time. According to the University of California San Francisco, this device worked for almost seven months without adjustments, thanks to advancements in artificial intelligence.

BCIs can also aid communication, helping people with conditions like Amyotrophic Lateral Sclerosis (ALS) or severe paralysis to communicate via thought-to-text systems. Other BCIs can directly influence brain activity to bring about changes in the mind and body, helping to alleviate the symptoms of Parkinson’s disease, control epilepsy and even treat severe depression.

BCI technologies are advancing at incredible rates, too. Between 2021 and 2023, the rate at which patients could communicate has increased from 15 words per minute to 78 words per minute. Researchers are even developing applications designed to solve the seemingly unsolvable, from restoring vision in blind people to bypassing damaged spinal cord sections to restore movement. The boundaries of medical treatment and human capabilities are being totally redefined.

Beyond healthcare and into daily life

The case for life-saving and life-altering brain chip technology is clear. But what happens when we step beyond the realm of medical use? Elon Musk has made no secret of his broader ambitions for BCIs. Last year, he tweeted: “In the future, there will be no phones, just Neuralinks”. It’s an exciting but terrifying prospect that highlights how far BCIs could reshape our relationship with technology.

From improving memory to hands-free control of devices, BCIs offer huge potential beyond healthcare. Research is already underway to explore how BCIs can be used to improve memory, learning and problem-solving skills. As this technology advances, BCIs could facilitate more seamless integration between humans and computers, enabling direct thought-to-text communication that allows us to control devices purely with our thoughts.

In the world of entertainment, BCIs are being explored for immersive experiences that allow users to interact with virtual environments by thinking. Research is also underway to explore how BCIs can unlock new levels of human neurocognitive performance, from boosting creativity to enhancing mental agility. We are hurtling towards a world where our minds can be tweaked and altered in ways we can only begin to imagine.

Challenges and controversies

The future of BCIs is exciting, but it also raises significant challenges, particularly around privacy, security and ethics. As BCI technology evolves, so do concerns around personal data, surveillance and manipulation. Most of us find the idea of a third-party having access to our thoughts unsettling, and with BCIs capable of decoding our brain activity, we face the risk of other parties exposing, hacking, or exploiting our most sensitive mental data.

As we move closer to a world where BCI use becomes part of everyday life, debates are intensifying about potential violations of mental privacy and safety. For instance, a recent paper highlighted how devices like Emotiv, a brain data software and hardware solution, can be used to extract information like a PIN.

The many technical challenges remain, too. Neural signals are inherently unstable, which means ensuring BCIs can accurately and reliably interpret brain activity over time is no small feat. The complexity of translating brain signals into meaningful and consistent data presents a significant hurdle to creating universally effective BCI systems. Plus, there are ethical implications. Trials on animals have been promising, but have also highlighted alarming side effects, which highlights the uncertainty surrounding the long-term effects of BCIs on humans.

Let’s not forget that BCIs are expensive too. If they become a luxury available only to the wealthy, won’t we deepen socioeconomic disparities? We could see a society where cognitive abilities and mental capacities are determined by wealth, further exacerbating inequality.

A neural revolution?

The BCI market is evolving rapidly and offers staggering potential for groundbreaking advancements in healthcare, cognitive abilities and beyond. BCIs are no longer futuristic, they’re an imminent reality. However, these technologies must also navigate complex ethical, security and technical challenges.

For investors, the path is far from straightforward. Those who understand the nuances of the BCI space, from regulatory shifts to potential risks, will be in the best position to capitalize on the transformative power of this technology. Additionally. those who can anticipate market needs while addressing public concerns and investing responsibly may find themselves at the forefront of one of the most transformative technological revolutions of our time.