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The Economic Times
The Economic Times
Shreya Biswas

Elon Musk's biggest rival isn't a startup, it's China, and they just won the brain chip race

Elon Musk brain chip Neuralink competitor China : For years, much of the attention around brain-computer technology has focused on Elon Musk and his company Neuralink. But while Neuralink continues testing its device in a small group of patients, China has taken a major step that Musk's company has not yet achieved.

China has approved what is being described as the world's first brain-computer chip to complete clinical trials and receive approval for commercial sale, as per a report.

The device, known as NEO, was developed by researchers at Tsinghua University in Beijing and Shanghai-based Neuracle Technology. The coin-sized implant is designed to help people with spinal cord injuries and paralysis and is expected to enter mass production for China's state-run healthcare system, as per the New York Post report.

China Reaches a Milestone Before Elon Musk's Neuralink

The approval marks a significant moment in the race to develop brain-computer interfaces.

While Neuralink began human trials in 2024, its N1 device has not yet received approval for general use. China’s NEO, by contrast, has already completed clinical testing and been cleared for commercial deployment.

According to the New York Post, 36 patients have participated in NEO trials, while Neuralink's N1 device is currently being tested in nine patients

The development gives China an early lead in a technology sector that many researchers and investors believe could become increasingly important over the next decade.

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What the NEO Brain Chip Does

The first version of NEO is focused on helping patients with neurological conditions, particularly those dealing with paralysis and spinal cord injuries.

The implant sits between the skull and the brain and presses eight sensors against the dura mater, the protective outer layer surrounding the brain, as per the New York Post report. Those sensors connect to nearby computers, while a central processing system converts brain activity into digital commands.

Researchers reportedly chose this design to reduce some of the risks associated with more invasive implants.

Why China's Design Is Different From Neuralink's

One key difference between the two systems is how they interact with the brain.

Neuralink's N1 prototype requires electrodes to penetrate the cerebral cortex to access brain signals.

NEO uses a less invasive approach by positioning its sensors against the brain's outer protective layer rather than penetrating deeper brain tissue.

University of Technology Sydney researcher Avinash Singh told MIT Review that the Chinese design's less invasive nature may be one reason it reached approval sooner.

Musk Has Long Promoted the Potential of Brain Chips

Elon Musk has repeatedly spoken about the possibilities of brain-computer technology.

Speaking at an event in Israel, Musk described restoring movement to people with severe paralysis and restoring sight as "pretty big deals," calling them "Jesus-level technologies," as quoted by New York Post.

Neuralink has said its technology could eventually allow users to perform tasks such as typing or controlling a computer cursor using only their thoughts.

One Neuralink participant, Audrey Crews, recently shared that, "I tried writing my name for the first time in 20 years. I’m working on it,” adding, “It’s humbling to know my journey is helping Neuralink refine this technology, which could one day let millions control devices with their minds,” as quoted by New York Post.

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Supporters See Medical Benefits

Researchers believe brain-computer interfaces could potentially help billions of people living with neurological conditions.

The technology is being explored for conditions involving movement and speech, as well as depression, epilepsy, stroke, and Parkinson's disease.

Supporters argue that these devices could dramatically improve quality of life for patients whose conditions currently limit communication or mobility.

Privacy and Security Questions Remain

Despite the medical promise, experts also warn that brain-computer technology raises significant privacy and cybersecurity concerns.

Griffith University cybersecurity expert Dr. David Tuffley said the technology could theoretically expose highly sensitive neural data, including thoughts and memories.

He warned that hacking such systems could potentially affect cognitive functions or even interfere with movement-related signals.

Because brain-computer interfaces process some of the most personal information imaginable, questions about data ownership, security, and privacy are expected to become increasingly important as the technology advances.

Brain Chips Still Face Challenges

Researchers note that implanting devices inside the human body remains a complex challenge.

The immune system can react to foreign objects, scar tissue can form around implants, and there are risks of infection or physical damage to surrounding tissue.

Dr. Tuffley noted that bleeding, swelling, or complications in areas responsible for speech and movement could have serious consequences if problems occur, as per New York Post.

These challenges remain central to the development of all brain-computer interface technologies, regardless of which company or country is leading the race.

FAQs

What is the NEO brain chip?

NEO is a brain-computer implant developed in China to help people with paralysis and spinal cord injuries.

Is China now ahead of Elon Musk in the brain-chip race?

China has achieved commercial approval first, while Neuralink remains in the clinical trial stage.

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