As artificial intelligence (AI) makes machines increasingly human-like, simultaneous efforts are underway to make humans more machine-like.

According to a Morgan Stanley research report titled "Neuralink: AI in Your Brain" published on October 8, brain-computer interfaces (BCI) are transitioning from science fiction to reality, with Elon Musk's Neuralink positioned at the center of this transformative revolution.

Founded by Musk in 2016, Neuralink's ultimate goal is to achieve a "symbiotic relationship" between humans and AI to ensure humanity remains relevant in the age of artificial general intelligence (AGI). However, its near-term objectives are highly practical: treating neurological conditions such as paralysis, blindness, and Alzheimer's disease through BCI technology.

Elon Musk outlined Neuralink's goals in June this year:

**Alleviating Human Suffering**: Initially, Neuralink focuses on improving the lives of people with degenerative neurological diseases or brain injuries. The company's first product, Telepathy, aims to enable human-machine interaction, such as controlling robotic hands/arms or mouse cursors, allowing paralyzed individuals to better interact with computers or their environment. The company's second product, Blindsight, also targets this goal by restoring vision for those with partial or complete vision loss.

**Enhancing Human Capabilities**: Neuralink's next step involves providing cybernetic enhancements to humans. For example, while Blindsight initially targets those with vision loss, Musk and the company's ultimate goal is to leverage this technology for superhuman vision, including the ability to see infrared and ultraviolet light.

**Understanding and Expanding Consciousness**: As Neuralink achieves its first two objectives, the company hopes to pursue more philosophical goals, namely understanding "what it means to be conscious."

**Mitigating AI Risks**: Ultimately, Neuralink aims to achieve human-AI symbiosis by transforming humans into cyborgs capable of processing and utilizing information at speeds competitive with AI, effectively implanting said AI into the human body, thereby eliminating the dangers AI poses to society. In this envisioned world, machines and humans would be natural extensions of each other, rather than machines replacing humans.

The market potential for brain-computer interfaces (BCI) is enormous. According to the report, the total addressable market (TAM) for BCI in US healthcare applications alone reaches $400 billion, with the report considering this estimate "conservative." The market will begin by addressing critical medical needs and gradually penetrate broader sectors.

Brain-computer interfaces will enter the market through medical "backdoor" entry, initially focusing on helping patients with neurological conditions such as paralysis and blindness. However, their long-term potential extends far beyond this, encompassing gaming, defense, social media, and ultimately achieving "human-machine symbiosis."

As an industry pioneer, Neuralink's technological progress is rapid. The report cites the company president's statement that as of September 2025, 12 patients have received implants, with expectations to reach approximately 25 by year-end, and 10,000 people on the waiting list.

However, the market isn't dominated by a single player. The report notes that companies like Synchron (using less invasive vascular intervention technology), Precision Neuroscience (using minimally invasive surface film technology), and others are employing different technological approaches, creating intense competitive dynamics.

**Medical First, Commercialization Path Becomes Clear**

Morgan Stanley believes healthcare is the first domain where BCI technology will be implemented, representing Neuralink's current core strategy. The company's initial product "Telepathy" aims to enable paralyzed patients to control computer cursors or robotic arms through thought, while the second product "Blindsight" focuses on restoring vision for the blind.

The report provides detailed descriptions of Neuralink's two core products:

**Telepathy**: This is the company's first product, which "reads" signals from the brain's motor cortex through the implanted N1 chip, allowing users to control computer cursors or external devices through thought. As of September 2025, 12 patients have received implants, with one patient using the system over 100 hours per week. Notably, the system's latency is approximately 10 times faster than normal brain-to-muscle response speed, meaning the computer responds even faster than the user's expectations.

**Blindsight**: This is the company's second product, designed to "write" signals to the brain's visual cortex through the S2 chip, helping blind individuals regain sight. Unlike Telepathy, which only reads signals, Blindsight's technology is more complex, representing another leap forward in BCI technology.

According to an unconfirmed Bloomberg report, the company expects Telepathy to receive regulatory approval in 2029, with Blindsight launching in 2030.

**Neuralink's "Hardcore" Technology: R1 Surgical Robot**

Morgan Stanley's report emphasizes that Neuralink's greatest differentiating advantage lies in its "deep vertical integration." To achieve large-scale application, Neuralink not only develops core N1 and S2 chips independently but also created the specialized R1 surgical robot.

Since the implanted electrode threads are thinner than human hair, human surgeons cannot perform the surgery. The R1 robot utilizes advanced imaging technology to autonomously and precisely implant electrodes into the brain while avoiding blood vessels. The report reveals that Neuralink is transitioning to next-generation robots with 11 times faster implantation speed (from 17 seconds/thread to 1.5 seconds/thread) while significantly reducing costs, such as surgical needle costs dropping from $350 to just $15 per needle.

Neuralink President Dongjin Seo told Morgan Stanley that the company decided from day one to develop surgical robots in-house because they foresaw that the scarcity of qualified neurosurgeons would become a critical scaling bottleneck when the technology reaches the general public.

Neuralink's strong progress is translating into enthusiastic capital market reception. The report indicates that Neuralink completed a $650 million Series E funding round in June 2025, achieving a post-money valuation of $9 billion, with total funding reaching $1.34 billion. The investor list includes prominent institutions such as Founders Fund and Sequoia Capital.

This demonstrates that despite commercialization still being some time away, capital markets have already placed heavy bets on BCI technology's disruptive potential.

**Market Size Analysis: Conservative Estimate of $400 Billion**

The report provides detailed market size calculations for BCI and believes the $400 billion TAM (total addressable market) for US healthcare markets alone, estimated in 2024, may still be conservative.

The report divides the market into two phases:

**Early TAM (~$80.8 billion)**: Primarily targeting patient populations with severe upper limb injuries, epilepsy, and depression. Covered conditions include motor neuron disease (MND/ALS), stroke, spinal cord injury, multiple sclerosis (MS), and others.

**Mid-term TAM (~$317.4 billion)**: Expanding to patient populations with moderate upper limb injuries or severe lower limb injuries.

The report predicts the first commercial BCI product may launch in 2030. By 2045, cumulative revenue from BCI implant surgeries could exceed $12 billion, indicating market penetration remains extremely low with enormous growth potential.

**Competitive Landscape: Players and Technology Routes**

While Neuralink enjoys significant fame, it's not the only player. Morgan Stanley's report outlines major global BCI competitors employing different technological approaches, creating a diverse competitive landscape:

**Synchron**: Its Stentrode device is implanted through the jugular vein without requiring cranial surgery, offering lower invasiveness. The company has raised $140 million.

**Precision Neuroscience**: Founded by Neuralink co-founders, its device is a thin film placed on the brain surface through tiny incisions, also a minimally invasive solution. Has raised $155 million.

**Paradromics**: Focuses on high data transmission rate BCI devices, having raised $97 million.

**Merge Labs**: Led by OpenAI CEO Sam Altman, exploring non-invasive ultrasound technology, currently in "stealth mode."

**Chinese Players' Ambitions**: The report specifically mentions China's substantial investment in the BCI industry, aiming to cultivate "two to three globally influential leading companies" by 2030.

**From Brain Waves to Heart's Desire**

BCI development wasn't achieved overnight, with its history tracing back a century. According to the report, this journey began in 1924 when German psychiatrist Hans Berger first recorded human brain electrical activity, known as electroencephalography (EEG).

Over subsequent decades, research progressively deepened. In the 1970s, UCLA's Jacques Vidal first introduced the term "brain-computer interface" in scientific literature. In 1988, researchers first achieved control of a physical robot through non-invasive EEG.

Entering the 21st century, with projects like "BrainGate," researchers successfully enabled paralyzed patients to control robotic arms through implanted BCI to perform complex actions like drinking coffee, establishing foundations for clinical applications.

Today's breakthroughs by companies like Neuralink build upon this series of lengthy and solid scientific explorations.

**Technology and Ethics: A "Double-Edged Sword"**

On the path to the future, BCI technology faces severe challenges and risks. The report notes that Neuralink's invasive surgery carries inherent neurosurgical risks. The company's first human patient, Noland Arbaugh, experienced 85% electrode thread detachment one month post-surgery, though subsequent software updates restored partial functionality.

Furthermore, deeper risks involve data security and ethical dilemmas.

The report warns that neural data collected by BCI is highly sensitive and, without proper protection, could be used by malicious actors to read intentions or even manipulate behavior. From a societal perspective, BCI technology might exacerbate inequality, creating a "neuro-elite" class capable of affording cognitive enhancement capabilities, raising widespread ethical concerns.

These challenges mean BCI's commercialization path is not merely a technological race, but a profound test of regulation, security, and fairness.