He unveiled the pig named Gertrude to demonstrate his ambitious plans, reports BBC.
"It's kind of like a Fitbit in your skull with tiny wires," the billionaire entrepreneur said on a webcast. His start-up Neuralink applied to launch human trials last year.
The interface could allow people with neurological conditions to control phones or computers with their mind.
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Musk argued that such chips could eventually be used to help cure conditions such as dementia, Parkinson's disease and spinal cord injuries.
But the long-term ambition is to usher in an age of what Musk calls "superhuman cognition", in part to combat artificial intelligence so powerful he says it could destroy the human race.
Gertrude was one of three pigs in pens that took part in Friday's webcast demo. She took a while to get going, but when she ate and sniffed straw, the activity showed up on a graph tracking her neural activity.
The processor in her brain sends wireless signals, indicating neural activity in her snout when looking for food.