MW Musk, Altman and China are fighting to control a potential $320 billion market for brain implants

By William Gavin

It's still very early days for brain chips that let people control devices with their thoughts - but the market opportunity has become increasingly intriguing to tech CEOs and politicians

Elon Musk's Neuralink is among the most visible brain-computer interface companies around. But OpenAI's Sam Altman and a growing number of Chinese startups are aiming to challenge its lead.

Elon Musk, Sam Altman and a growing number of rivals are all fighting to become the leading player in the nescient but potentially lucrative market for brain implants.

Morgan Stanley analysts estimate that the global market for brain-computer interface, or BCI, technology could be worth $80 billion by 2035. A decade after that, the market for BCIs in the U.S. alone could be valued at $320 billion, the bank said in a Wednesday note to investors.

Brain-computer interface systems aren't new. The first major testing of such technology came in the 1970s in California, although roots can be found decades earlier. In the late 1990s, neurologist Philip Kennedy developed the first BCI to allow a severely paralyzed patient to move a computer cursor using their brain.

As BCI research has developed, so has the opportunity to make money off of the technology, though companies often emphasize the humanitarian benefits they can provide. According to data from Tracxn Technologies (IN:543638), which tracks private markets, there are 278 BCI companies around the world. Collectively, they've raised more than $4 billion.

The most visible is Neuralink, the BCI startup founded by Tesla $(TSLA)$ CEO Elon Musk in 2016 that's reportedly worth $9 billion. Since January 2024, the startup has given its "Telepathy" implant to 21 patients with paralysis, allowing them to use phones, computers or robotic limbs with their thoughts.

Neuralink is also running a clinical trial for an implant designed to restore speech. Musk has said that, pending regulatory approval, Neuralink is ready for a trial of Blindsight, which could help restore patients' vision.

By the end of the decade, Neuralink wants to implant its tech in a "otherwise healthy" person because the benefit outweighs the risk, President DJ Seo said last September. That could mean people would be able to pay for the ability to use their phones without physically doing anything.

In October, Neuralink submitted a scientific paper to the New England Journal of Medicine that described the first three patients implanted with one of its devices. It would be its first peer-reviewed publication with human data.

The startup's approach includes placing electrodes near certain neurons after a protective layer around the brain and a piece of the patient's skull are removed. Then, Neuralink uses a robot to insert microscopic threads into the brain. After that, the implant is placed in the skull and skin is closed over it, according to the company.

Competing with Neuralink is Synchron, a BCI company that has implanted 10 patients with devices designed to avoid open-brain surgery and recently raised $200 million. The firm has been backed by Amazon (AMZN) founder Jeff Bezos and was the first BCI company with connectivity to Apple $(AAPL)$ devices.

Pandromics, another competitor, implanted its BCI in a human for the first time last June. Its Connexus BCI is designed to restore communication for people with severe motor impairment as a result of spinal-cord injuries or ALS.

There's also the new kid on the block.

Merge Labs exited stealth mode in mid-January with $252 million in funding from investors, including OpenAI. Altman, OpenAI's CEO, helped found Merge Labs, which aims to create widely accessible BCIs that are "equal parts biology, device and AI."

Altman's role with Merge Labs set the stage for another rivalry in his long-standing feud with Musk, who helped found OpenAI but has soured on the company. Altman has also reportedly explored buying a rocket maker to compete with Musk's SpaceX. Musk, meanwhile, founded rival artificial-intelligence startup xAI and has taken OpenAI to court.

Those U.S. tech big shots face increasing competition from overseas, particularly in China. According to Morgan Stanley, the Chinese government is expected to feature BCI technology prominently in its next five-year plan, set to be unveiled in March.

"Inclusion in the plan would likely signal increased policy support, funding and commercialization pathways for BCI research and development over the next five years," analyst Adam Jonas said Wednesday.

Some of that support is already here. In December, China unveiled a 11.6 billion yuan ($1.7 billion) fund to support BCI companies. In August 2025, Chinese agencies revealed a plan to reach breakthroughs in "core BCI technologies" and build at least two globally competitive BCI firms over the next few years.

Jonas noted that researchers at a Chinese university recently completed the first in-orbit test of a wireless BCI, collecting stable data under extreme conditions. China also has at least 20 BCI startups, 14 of which are funded, according to Tracxn.

-William Gavin

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February 26, 2026 14:21 ET (19:21 GMT)

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