While Musk's Neuralink drills into skulls, China's BrainCo bets the future of brain tech is wearable

Elon Musk's Neuralink has garnered attention for its brain-computer interfaces (BCI) that require surgical implants to assist individuals with disabilities. However, a growing number of companies believe that the future of neural technology lies in non-invasive, wearable solutions. These innovations process brain signals and convert them into commands, allowing users to control external devices purely through thought. While funding for BCI startups remains relatively modest compared to the vast sums flowing into artificial intelligence, interest is on the rise. Companies are achieving significant milestones, enabling individuals with conditions like amyotrophic lateral sclerosis (ALS) to engage in activities such as typing or gaming using their brain signals. With AI enhancing signal-processing capabilities, the potential to connect human minds with AI and robotics is becoming increasingly plausible. In this competitive landscape, China has recognized BCI as a crucial industry in its latest Five-Year Plan, with regulators recently approving a minimally invasive BCI device aimed at restoring hand function after spinal injuries. Companies like StairMed and NeuroXess are advancing implant-based solutions, while the non-invasive sector is gaining traction through initiatives from Merge Labs and China's Gestala, both exploring ultrasound technologies. Among these innovators is BrainCo, a startup from Hangzhou that specializes in prosthetics and wearable tech using BCI. Founded in 2015 within Harvard's Innovation Labs, BrainCo has embraced non-invasive methods. According to Nyx He, the company's senior vice president, while some conditions necessitate invasive approaches, many others, especially where pharmaceuticals prove ineffective, can be addressed through non-invasive techniques that are more accessible and carry lower risks. BrainCo's bionic hands, approved by the U.S. Food and Drug Administration, interpret the neural and muscular signals from amputees to translate their intentions into movement. The company also offers a wearable sleep aid that emits low-intensity electrical pulses to promote stress relief. Recently, BrainCo secured 2 billion yuan (approximately $280 million) in funding, co-led by IDG Capital and Walden International. The challenge for non-invasive technologies lies in accurately capturing and interpreting subtle brain signals from outside the skull. BrainCo has developed a dry electrode sensor and an AI algorithm to decode these signals. Their strategic roadmap begins with aiding those in urgent need, such as amputees, before expanding to address conditions like ADHD and depression, ultimately targeting the consumer market. China's ambitious plans for BCI development, as highlighted by a recent commentary from the Chinese Academy of Sciences, envision a trajectory from medical applications to autonomous driving and smart manufacturing. Investors are divided on the most effective technological approach, with some advocating for implants while others see promise in non-invasive methods. As the BCI market evolves, China's emphasis on non-invasive rehabilitation technologies is evident, supported by government initiatives to streamline research and production. The integration of BCI into industrial policy signifies a strategic commitment to fostering innovation in this field. With regulatory and clinical barriers lower for non-invasive technologies, the landscape is primed for growth. With ethical considerations around performance enhancement and data privacy looming, BrainCo insists it does not collect user data, opting instead to store information locally on devices. Amid the geopolitical tensions surrounding technological advancements, BrainCo's mission remains focused on delivering solutions that transcend borders, aiming to improve lives in both China and the United States.