The company - called Neuralink - will be the vehicle for the development of the "neural lace" Musk discussed on Twitter and elsewhere, the The Wall Street Journal first reported.
People walk past an electronic board showing stock prices outside a brokerage at a business district in Tokyo, Japan, January 23, 2017.
The value and terms of the deal were not disclosed. The acquisition is expected to close in 2017, according to a joint statement on Tuesday.
United Airlines found itself in the middle of a public relations kerfuffle this weekend after it did not allow two young girls to board a flight because they were wearing leggings.
China Southern Airlines said on Tuesday it will sell a small stake to American Airlines Group in a $200 million deal that will give the carriers better access to the world's two largest travel markets.