On April 24, Elon Musk's $9 billion neurotechnology company falsely self-certified as a "small disadvantaged business" (SDB) on a federal filing, a designation that qualifies the company for preferential treatment as part of a racial and ethnic diversity initiative.

The SDB designation can also only be legally claimed by companies owned by "economically disadvantaged individuals."

Neuralink, which is developing implantable brain-computer interfaces, registered with the government as an SDB while Musk leveraged his position at the White House to cut federal funding for diversity, equity, and inclusion programs.

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Neuralink's misrepresentation is particularly notable, given Musk's past condemnations of diversity, equity, and inclusion (DEI) programs aimed at helping members of historically disadvantaged groups. "DEI is just another word for racism," Musk said in January of this year. "Shame on anyone who uses it," he added. Musk has also described DEI as "actually illegal."

While leading the Department of Government Efficiency, the Trump administration's austerity program, Musk claimed that he was ferreting out and terminating federal DEI initiatives. DOGE, under Musk's guidance, focused on purging federal DEI grants and contracts for minority owned businesses, including legitimate SDBs.

In May, after Neuralink secured $600 million in fresh funding, the company had a $9 billion before-cash valuation, according to Semafor.