As the brain-computer interface sector edges closer to commercial reality, robotics is rapidly developing into a primary frontier for advanced applications.

Smart Prosthetics as the Initial Market

Smart prosthetics designed for individuals with limb loss represent the vanguard of this technology. According to Morgan Stanley estimates from 2024, this sector forms a $4.5 billion segment within a broader $400 billion market opportunity. The United States accounts for roughly 2.5 million individuals living with limb loss, alongside an additional 180,000 requiring amputations annually. Approximately 40 percent lack an upper limb, positioning them as prime early adopters for solutions driven by pioneers like Phantom and BIOS.

Both innovative startups revealed major clinical milestones recently, showcasing safety trial participants who leverage implanted neural interfaces to steer grips, restore dexterity, and preview a science-fiction reality. Company executives detailed their clinical market trajectories and overarching visions for neural interfaces in a future where robotics and artificial intelligence dominate.

Phantom Neuro: Implanted Control Systems

Phantom Neuro announced the successful implantation of its Phantom X system into its first two human volunteers as part of CYBORG, an early feasibility study taking place in Australia. The trial aims to enroll up to six participants before transitioning to evaluations in the United States.

"Our initial indication for the technology is upper limb prosthesis control for amputees, but the goal here is much larger than that," stated Connor Glass, founder and chief executive of Phantom. "It’s to create a broad control system that can be a universal controller for any type of technology that would improve somebody’s life, to include their computer, their cell phone, a wheelchair, whatever it is, for these various demographics."

Headquartered in Austin, Texas, the firm secured a Breakthrough device designation from the FDA and closed a $19 million Series A funding round last year led by Ottobock, the globe's foremost manufacturer of prosthetic limbs. Combined with seed investments and strategic backing from the DARPA commercial strategy office, the enterprise has accumulated just under $30 million in aggregate funding since its 2020 inception.

Glass initially entered ROTC with ambitions for special forces until recurring stress fractures derailed that trajectory. He pivoted toward medicine with a focus on combat trauma, leading to a research fellowship in plastic and reconstructive surgery at Johns Hopkins University. There, operating rooms exposed him to nerve and muscle signal capture to manipulate robotic limbs, where he observed teams relying on bulky computers and wall outlets. That inspiration sparked the creation of his company.

BIOS: Biological Input Output Systems

Recently, media outlets highlighted a clinical trial participant named Avi, who received a BIOS implant earlier this year and has been practicing hand dexterity with investigators at the University of Utah NeuroRobotics Lab. After playing chess and picking up an egg via the interface-controlled prosthetic, Avi reported experiencing actual tactile sensations in his fingers when holding his wife's hand.

"What we’re doing is listening to north of 250 nerves simultaneously," explained co-founder and CEO Josh Miller. "We’re sampling each nerve cell 30,000 times a second, and we’re translating those signals into digital signals."

Miller outlined an implanted four-millimeter electrode array—comparable in size to four stacked paper clips—inserted via an outpatient procedure. It links to an external controller running an AI program called Aster on roughly two watts of continuous power. According to Miller, the firm has accumulated more than 30,000 hours of recorded neural data derived from live human volunteer patients.

The leadership team prioritized prosthetics initially because it offered an immediate application delivering maximum benefit to the broadest population. Restoring a sense of touch and intuitive control allows users to reintegrate the limb into their body image, often referring to it as their own hand rather than a robotic device.

Navigating the Clinical Market

BIOS currently collaborates with multiple clinical sites originating from the foundational DARPA program, including VA facilities in the Bronx, Tampa, Salt Lake City, Walter Reed, and the University of Utah. Engaging the FDA through Breakthrough and TAP pathways, the enterprise projects commercial entry by 2028.

Phantom executed its first armband cuff implantation in roughly one hour under sedation without general anesthesia, discharging the patient in under four hours. The second procedure lasted 45 minutes while the participant remained awake. Glass envisions future implantations resembling 30-minute cosmetic procedures, with patients departing within two hours, targeting a commercial launch before the decade concludes.

The revenue model pairs a share of two distinct reimbursement codes for surgical implantation and upper limb prosthetic control systems. Phantom participates in RAPID, a joint FDA and Centers for Medicare and Medicaid Services initiative designed to fast-track high-impact medical devices, aligning regulatory and coverage standards.

Building the Ecosystem

Upper-limb prostheses currently stand closest to a commercial clinical reality among neurotech applications. Robotic hands equipped with independent finger actuation and dynamic ranges of motion have seen market prices drop significantly over recent years.

"People are not able to meaningfully harness the power of new prosthetic hands because the control system sucks," Glass remarked. Conversely, BIOS aims to operate like Intel, forming strategic partnerships with smart-hand manufacturers, while Phantom pursues an API-driven ecosystem spanning limbs, wheelchairs, and laptops.

Despite promising economic and technological shifts, the landscape remains fragmented. Neither startup directly manufactures prosthetic hardware, creating potential vulnerabilities in long-term customer support and hardware upgrades. Furthermore, shifting public funding and non-dilutive capital availability present ongoing hurdles for clinical trial expansions.

Dual-Use Applications and Beyond

While prosthetics serve as the initial beachhead, both companies envision applications expanding into chronic pain management, stroke rehabilitation, and consumer electronics. Ultimately, these universal neural interfaces seek to bridge human intent directly with complex digital machinery and defense technologies.