and there goes so much money for a step in the wrong direction. Problem one! it is still hardware and so can not simulate biological functions that change with temperature, health, heart rate, etc. Problem two! it is still hardware and so cannot change it's base design. the brain can rearrange itself when necessary and that is also how long-term memories are stored, as new connections. whoever uses that chip only gets milliseconds of short-term memory. the reason why software based systems take so long and are a hassle is becuse they can take into an account all of these variables and more.
Read about this chip along with some other brain simulation technology here. IBM is already modelling the mind, but how does it compare?