The global race for technological leadership is no longer limited to artificial intelligence (AI) and semiconductor manufacturing. A new frontier is emerging in the form of brain-computer interface (BCI) technology, where companies are developing systems that allow people to control devices using only their brain signals.
While Elon Musk’s Neuralink has captured worldwide attention with its implantable brain chips, Chinese startup BrainCo is taking a different approach. Instead of requiring surgery, the company is focusing on non-invasive brain-computer interfaces, aiming to make the technology safer, more affordable, and accessible to a much larger audience.
What Is BrainCo?
Founded in 2015, BrainCo is a neurotechnology startup that originated from Harvard Innovation Labs before establishing its headquarters in Hangzhou, China.
The company has become one of China’s most closely watched technology firms and is included in the country’s group of promising startups often referred to as the “Six Little Dragons.”
Unlike companies developing implantable brain chips, BrainCo is concentrating on wearable brain-computer interface devices that can read brain activity without requiring surgery.
Its goal is to bring BCI technology into everyday healthcare and eventually consumer electronics.
How Does BrainCo’s Technology Work?
Brain-computer interfaces capture electrical signals generated by the brain and convert them into digital commands that can control external devices.
BrainCo’s systems use non-invasive sensors placed outside the head rather than implanted inside the brain.
According to the company, this approach offers several advantages:
- No brain surgery is required.
- Lower medical risk.
- Reduced treatment costs.
- Easier acceptance among patients.
- Greater potential for large-scale adoption.
While invasive BCIs remain necessary for certain neurological conditions, BrainCo believes many practical applications can be achieved using wearable technology.
BrainCo Products: From Bionic Hands to Sleep Devices
BrainCo has already developed several products powered by brain-computer interface technology.
FDA-Approved Bionic Hands
One of the company’s most significant innovations is its bionic prosthetic hand, which recently received approval from the U.S. Food and Drug Administration (FDA).
The prosthetic works by detecting electrical signals from the user’s muscles and nervous system. Artificial intelligence then interprets these signals and translates them into natural finger movements, allowing amputees to control the hand more effectively.
According to company executives, demand for its prosthetic technology has grown significantly compared to the previous year.
Brain-Based Sleep Therapy
BrainCo has also introduced a wearable sleep device designed to reduce stress and improve sleep quality.
The system delivers low-intensity electrical stimulation that encourages the release of neurochemicals associated with relaxation, helping users manage stress and sleep disorders.
Headset for Neurological Conditions
The company has developed another wearable headset intended to support people living with neurological and developmental disorders, including:
- ADHD
- Autism
- Insomnia
The device uses brain-computer interface technology to monitor brain activity and assist with therapy.
Weight-Loss Technology Under Development
BrainCo is also working on an innovative brain-based treatment aimed at reducing appetite.
The company hopes the technology can mimic the appetite-suppressing effects of popular GLP-1 weight-loss medications, but without relying on traditional drugs.
Executives expect this treatment to reach the market around 2027 or 2028, pending further development and approvals.
BrainCo’s Long-Term Vision
The company sees brain-computer interfaces extending far beyond healthcare.
BrainCo believes future robots and intelligent machines could eventually be controlled directly through human brain signals, creating a new generation of brain-powered robotics.
Its leadership views the combination of brain-computer interfaces and embodied artificial intelligence as one of the most exciting areas of future innovation.
Funding and Business Growth
BrainCo recently strengthened its financial position by raising 2 billion yuan (approximately $280 million) in a funding round led by IDG Capital and Walden International.
The investment will help accelerate product development, expand commercial operations, and support future research into brain-computer interface technology.
Challenges Facing BrainCo
Although non-invasive BCIs offer several advantages, they also present significant technical challenges.
Unlike implanted brain chips, wearable devices must detect weak electrical signals from outside the skull. These signals are often difficult to capture accurately because they are extremely faint and easily affected by background noise.
To overcome this problem, BrainCo has developed proprietary dry electrode sensors capable of detecting brain signals without gels or invasive procedures.
The company also relies on advanced artificial intelligence algorithms to interpret these complex neural signals more accurately.
Industry analysts note that signal quality remains one of the biggest limitations for non-invasive brain-computer interface technology.
However, BrainCo’s combination of custom sensors, AI-powered decoding software, and commercially available products gives it a competitive advantage in the growing BCI market.
Future Expansion Plans
Initially, BrainCo plans to focus on patients who can benefit most from brain-computer interfaces, including amputees and people with neurological disorders.
Over time, the company aims to expand into treatments for conditions such as:
- ADHD
- Depression
- Cognitive disorders
BrainCo also plans to enter the broader consumer electronics market by integrating brain-computer interface technology into everyday wearable devices.
Another part of its business strategy involves licensing its BCI platform to other companies developing neurotechnology products.
Regarding privacy, the company says user data remains stored locally on individual devices rather than being collected on company servers. Certain performance metrics, such as focus scores generated by training devices, may also remain stored only on the user’s device.
China’s Growing Brain-Computer Interface Industry
BrainCo is not the only Chinese company investing in brain-computer interfaces.
Several startups are actively developing competing technologies, including:
- StairMed (implantable BCIs)
- NeuroXess (brain implants)
- Gestala (ultrasound-based BCIs)
- Neuracle Medical Technology
Recently, Neuracle attracted global attention after receiving regulatory approval for what it described as the world’s first commercially approved minimally invasive brain-computer interface designed to restore hand function in patients with spinal cord injuries.
China Is Backing Brain-Computer Interface Development
China has identified brain-computer interfaces as one of its strategic future technologies.
The government included BCI development in its latest Five-Year Plan, highlighting the industry as a national priority.
In 2025, multiple Chinese government ministries jointly introduced a roadmap aimed at achieving major technological breakthroughs in brain-computer interfaces by 2027.
Authorities have also simplified approval pathways for non-invasive rehabilitation technologies while encouraging collaboration between startups, universities, and hospitals.
In addition, China has created a dedicated medical insurance category for brain-computer interface treatments, a move that experts believe could accelerate commercial adoption and expand patient access.
BrainCo vs Neuralink: Different Paths to the Future
Although BrainCo and Neuralink share the goal of advancing brain-computer interface technology, their strategies are fundamentally different.
Neuralink is focused primarily on implantable brain chips capable of treating severe neurological disorders through direct interaction with the brain.
BrainCo, on the other hand, believes that non-invasive wearable BCIs have greater potential for widespread public adoption because they eliminate the need for surgery while remaining safer and more affordable.
As brain-computer interface technology continues to evolve, competition between companies in the United States and China is expected to intensify, making BCIs one of the most closely watched areas of next-generation innovation.