Particle.news
Download on the App Store
4 ARTICLES
·
yesterday

Neuralink Self-Certifies as Small Disadvantaged Business Before $9 Billion Valuation

Pressure is building over unvetted self-certification practices after the DOJ fined companies for false disadvantaged-business claims.

Image
Elon Musk arrives at the 2024 Breakthrough Prize Ceremony in Los Angeles.
Image

Overview

  • Neuralink’s April filing on SAM.gov designated it as a Small Disadvantaged Business, a program intended for companies at least 51% owned by socially and economically disadvantaged individuals.
  • The Small Business Administration does not vet self-certifications submitted through its system, allowing Neuralink to claim SDB status without agency verification.
  • None of the SDB eligibility criteria appear to apply to Elon Musk, whose $404 billion net worth and leadership of multiple tech giants conflict with the program’s qualifications.
  • In early June, Neuralink secured $650 million in funding at a $9 billion valuation from investors including Sequoia Capital, ARK Invest and Founders Fund.
  • The Department of Justice has in past cases fined firms that misrepresented disadvantaged-business status, exposing Neuralink to potential legal and reputational risks.