Elon Musk's brain implant company Neuralink is planning to raise approximately $500 million at a pre-money valuation of $8.5 billion, according to a Bloomberg News report published Wednesday. The company has reportedly begun preliminary discussions with potential investors, though the terms of the funding round have not yet been finalized.

The potential $8.5 billion valuation represents a significant increase from the $5 billion estimate in 2023, based on privately executed stock trades described to Reuters. Neuralink previously raised $280 million in a funding round led by Peter Thiel's Founders Fund.

Neuralink is currently testing its brain implant technology designed to help people with spinal cord injuries. The first patient has already demonstrated the ability to play video games, browse the internet, post on social media, and move a cursor on a laptop directly using brain signals.

The U.S. Food and Drug Administration (FDA) initially rejected Neuralink's request to begin clinical trials, citing safety concerns, as Reuters reported in 2023. The agency has since granted approval for clinical trials, which are now in progress.

Musk has outlined ambitious goals for Neuralink, suggesting the brain chips could eventually be used to treat various conditions including obesity, autism, depression, and schizophrenia. He envisions facilities where people could receive quick surgical insertions of these devices, and even foresees applications for web browsing and telepathic communication.

The funding push comes during a challenging period for Musk's business empire. His net worth dropped by $29 billion in a single day on March 10 when Tesla shares plummeted 15.43%, closing at $222.15. Since December 2024, Musk's fortune has decreased from $486 billion to $301 billion.

Earlier this year, Reuters reported that the FDA was reaching out to recently dismissed scientists, including some who had been reviewing Neuralink's device, about returning to their positions.

Neuralink faces competition in the brain-computer interface market, with rival company Synchron Inc also testing an implant designed to help people with motor impairment type on computers. Neuralink did not immediately respond to Reuters' request for comment on the reported funding plans.