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Elon Musk‘s brain implant startup Neuralink, which was valued at close to $2 billion (roughly Rs. 16,500 crore) in a private fundraising round two years ago, is now worth around $5 billion (roughly Rs. 41,300 crore) based on privately executed stock trades described to Reuters by five sources with knowledge of the matter.

Some purchases by bullish investors boosted the valuation in recent months, ahead of Neuralink’s May 25 announcement that U.S. regulators had approved a human trial on its brain chip, the sources said.

Experts have said it could take several years for Neuralink to secure commercial use clearance. Kip Ludwig, former program director for neural engineering at the U.S. National Institutes of Health (NIH), said he “optimistically” expected Neuralink to take at least 10 more years to commercialize its brain implant. The company also faces other challenges that include federal probes into its handling of animal research.

Following the trial’s approval, however, Neuralink shares were marketed privately to investors in recent days at a $7 billion (roughly Rs. 57,900 crore) valuation, equivalent to $55 (roughly Rs. 4,500) per share, according to an email seen by Reuters. Reuters could not establish whether the seller found buyers for that price. The email cited the U.S. Food and Drug Administration’s (FDA) approval of the clinical trial as grounds for the deal being “sweeter.”

Neuralink executives and Musk did not respond to requests for comment.

Musk has expressed grand ambitions for Neuralink, saying its chip would allow healthy and disabled people alike to pop into neighbourhood facilities for speedy surgical insertions of devices to treat obesity, autism, depression and schizophrenia. He even sees them being used for web-surfing and telepathy. A Neuralink executive recently gave more modest short-term objectives, such as helping paralyzed patients communicate through computerized text without typing.

The stock transactions at a valuation of around $5 billion (roughly Rs. 41,300 crore) have been carried out by shareholders such as employees and the company’s early backers, rather than Neuralink selling new shares to investors. Such so-called secondary trades are an imperfect gauge of a company’s value; their volume is thin and they lack the wider market consensus of a fundraising round or initial public offering (IPO).

Neuralink’s valuation jump in secondary trades is in sharp contrast to other startups. About 85percent of pre-IPO companies are currently valued in secondary trades at an average discount of 47 percent to their last funding round, according to data provider Caplight.

In Neuralink’s last known fundraising in 2021, it raised $205 million (roughly Rs. 1,700 crore) at an approximately $2 billion (roughly Rs. 16,500 crore) valuation, according to data provider Pitchbook.

Many of the recent stock sales have been to relatively small investors, who typically focus more on getting a slice of a company owned by Musk than scrutinizing its valuation. The maximum amount sought for the Neuralink shares marketed for sale at a $7 billion (roughly Rs. 57,900 crore) valuation was just $500,000, according to the email seen by Reuters.

Sim Desai, chief executive of Hiive, an online platform where the shares are traded, said demand for Neuralink stock has been “tremendous.” He pegged the valuation that buyers are willing to pay at around $4.5 billion (roughly Rs. 37,200 crore).

Some biomedical experts are skeptical. Arun Sridhar, a scientist and entrepreneur who specializes in neuromodulation, called Neuralink’s valuation “bonkers” based on how early the brain implant is in its clinical development.

“A study to assess safety and tolerability is in no shape or form valid to justify a $5 billion (roughly Rs. 41,300 crore) valuation,” said Sridhar, who helped launch Galvani Bioelectronics, a developer of implants backed by GSK Plc and Alphabet Inc’s Verily Life Sciences. Galvani is not a competitor of Neuralink because its implants under development will be installed in an artery to the spleen to help treat rheumatoid arthritis, rather than the brain.

Investigations

The FDA initially rejected Neuralink’s request for a human trial last year, citing safety reasons, Reuters has reported. Even after securing approval, the company faces several challenges.

Neuralink has come under scrutiny from U.S. lawmakers after Reuters reported in May that its animal-research board may have violated conflict-of-interest regulations. Neuralink employees who sat on that board, which oversees the welfare of the animals that were being tested, also stood to benefit from the implant’s quick development. Neuralink stock that some of the employees hold has jumped around 150 percent in value in just two years, based on the secondary trades.

The law enforcement arm of the U.S. Department of Agriculture has been investigating Neuralink for potential animal-welfare violations. Neuralink staff told Reuters last year that the company was rushing and botching surgeries on monkeys, pigs and sheep, resulting in far more animal deaths than necessary, as Musk pressured staff to receive FDA approval.

The Department of Transportation is separately probing whether Neuralink illegally transported dangerous pathogens on chips removed from monkey brains without proper containment measures.

Neither Musk nor Neuralink have responded to multiple requests for comment on the probes or the Reuters reports.

© Thomson Reuters 2023
 


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A Nearby Supernova May End Dark Matter Search, Claims New Study

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A Nearby Supernova May End Dark Matter Search, Claims New Study

The pursuit of understanding dark matter, which comprises 85 percent of the universe’s mass, could take a significant leap forward with a nearby supernova. Researchers at the University of California, Berkeley, led by Associate Professor of Physics Benjamin Safdi, have theorised that the elusive particle known as the axion might be detected within moments of gamma rays being emitted from such an event. Axions, predicted to emerge during the collapse of a massive star’s core into a neutron star, could transform into gamma rays in the presence of intense magnetic fields, offering a potential breakthrough in physics.

Potential Role of Gamma-Ray Telescopes

The study was published in Physical Review Letters and revealed that the gamma rays produced from axions could confirm the particle’s mass and properties if detected. The Fermi Gamma-ray Space Telescope, currently the only gamma-ray observatory in orbit, would need to be pointed directly at the supernova, with the likelihood of this alignment estimated at only 10 percent. A detection would revolutionise dark matter research, while the absence of gamma rays would constrain the range of axion masses, rendering many existing dark matter experiments redundant.

Challenges in Catching the Event

For detection, the supernova must occur within the Milky Way or its satellite galaxies—an event averaging once every few decades. The last such occurrence, supernova 1987A, lacked sensitive enough gamma-ray equipment. Safdi emphasised the need for preparedness, proposing a constellation of satellites, named GALAXIS, to ensure 24/7 sky coverage.

Axion’s Theoretical Importance

The axion, supported by theories like quantum chromodynamics (QCD) and string theory, bridges gaps in physics, potentially linking gravity with quantum mechanics. Unlike neutrinos, axions could convert into photons in strong magnetic fields, providing unique signals. Laboratory experiments like ABRACADABRA and ALPHA are also probing for axions, but their sensitivity is limited compared to the scenario of a nearby supernova. Safdi expressed urgency, noting that missing such an event could delay axion detection by decades, underscoring the high stakes of this astrophysical endeavour.

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Fastest-Moving Stars in the Galaxy May be Piloted by Aliens, New Study Suggests

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Fastest-Moving Stars in the Galaxy May be Piloted by Aliens, New Study Suggests

Intelligent extraterrestrial civilisations might be utilising stars as massive interstellar vehicles to explore the galaxy, according to a theory proposed by Clement Vidal, a philosopher at Vrije Universiteit Brussel in Belgium. His research suggests that alien species could potentially accelerate their binary star systems to traverse vast cosmic distances. While such a concept is purely hypothetical and unproven, Vidal’s recent paper, which has not undergone peer review, raises intriguing possibilities about advanced extraterrestrial engineering.

Concept of Moving Star Systems

The study was published in the Journal of the British Interplanetary Society. As per a report by LiveScience, the idea revolves around the notion that alien civilisations, instead of building spacecraft for interstellar travel, might manipulate entire star systems to travel across the galaxy. Vidal highlights binary star systems, particularly those involving neutron stars and smaller companion stars, as ideal candidates. Neutron stars, due to their immense gravitational energy, could serve as anchors for devices designed to propel the system by selectively ejecting stellar material.

Vidal explained in the paper that uneven heating or manipulation of magnetic fields on a star’s surface could cause it to eject material in one direction. This process would create a reactionary thrust, propelling the binary system in the opposite direction. The concept provides a way to travel while preserving planetary ecosystems, making it a theoretically viable method for species reliant on their home systems.

Known Examples with High Velocities

Astronomers have identified hypervelocity stars, such as the pulsars PSR J0610-2100 and PSR J2043+1711, which exhibit high accelerations. While their movements are believed to be natural phenomena, Vidal suggests they could be worth further investigation to rule out potential artificial influences.

This theory adds an unconventional angle to the search for intelligent life, expanding possibilities beyond traditional methods of exploration like searching for signals or probes. The research underscores the importance of considering advanced and unconventional methods aliens might employ to navigate the galaxy.

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Hubble Telescope Finds Unexpectedly Hot Accretion Disk in FU Orionis

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Hubble Telescope Finds Unexpectedly Hot Accretion Disk in FU Orionis

NASA’s Hubble Space Telescope has provided new insights into the young star FU Orionis, located in the constellation Orion. Observations have uncovered extreme temperatures in the inner region of its accretion disk, challenging current models of stellar accretion. Using Hubble’s Cosmic Origins Spectrograph and Space Telescope Imaging Spectrograph, astronomers captured far-ultraviolet and near-ultraviolet spectra, revealing the disk’s inner edge to be unexpectedly hot, with temperatures reaching 16,000 kelvins—almost three times the Sun’s surface temperature.

A Star’s Bright Outburst Explained

First observed in 1936, FU Orionis became a hundred times brighter in months and has remained a unique object of study. Unlike typical T Tauri stars, its accretion disk touches the stellar surface due to instabilities. These are caused by the disk’s large mass, interactions with companion stars, or material falling inwards. Lynne Hillenbrand, a co-author from Caltech, in a statement said that the ultraviolet brightness seen exceeded predictions, revealing a highly dynamic interface between the star and its disk.

Implications for Planet Formation

As per a report by NASA, the study holds significant implications for planetary systems forming around such stars. The report further quoted Adolfo Carvalho, lead author of the study, saying that while distant planets in the disk may experience altered chemical compositions due to outbursts, planets forming close to the star could face disruption or destruction. This revised model provides critical insights into the survival of rocky planets in young star systems, he further added.

Future Investigations on FU Orionis

The research team continues to examine spectral emission lines in the collected data, aiming to map gas movement in the star’s inner regions. Hillenbrand noted that FU Orionis offers a unique opportunity to study the mechanisms at play in eruptive young stars. These findings, published in The Astrophysical Journal Letters, showcase the ongoing value of Hubble’s ultraviolet capabilities in advancing stellar science.

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