The firm was registered in California last July, and will focus on developing “neural lace” technology, reports The Wall Street Journal.
Musk tweeted that more information about Neuralink could emerge in April, but recent comments from the Tesla chief executive suggest he’s aiming to create cyborgs.
The idea is that electronic devices embedded in the brain could improve human performance in certain areas, such as memory.
According to the report, neural lacing could also enable us to communicate with machines directly, without the need for additional interfaces, and upload and download our thoughts to computers.
Earlier this year, he warned that humans risk becoming irrelevant unless they merge with machines.
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“Over time I think we will probably see a closer merger of biological intelligence and digital intelligence,” Musk said at the World Government Summit in Dubai.
“It’s mostly about the band width, the speed of the connection between your brain and the digital version of yourself - particularly output.”
Elsewhere in Silicon Valley, Facebook is reportedly working on a “computer interface” said to be capable of scanning users’ brains.