To my knowledge, we understand how an individual neuron works quite well. We just don’t really understand macro effects in large networks of neurons.
The video seems buzz wordy. Without looking into this too deeply, it seems like they’re using neurons individually or in small groups rather than creating a true “brain”. I would guess they’re using neurons or small groups of them sort of like transistors that do a single basic thing rather than a full “brain” that they just feed images to.