The researchers claim that the invention has an accuracy rate of at least 90 percent and that it interprets the vowels and consonants in our brains.
They believe that in the future the mind reader could help patients who suffer from diseases that do not allow them to move or speak.
The device analyzes and registers the mixture of consonants and vowels that we use when constructing sentences in our brain.
They claim that the machine then interprets these sentences based on neural signals and can simultaneously translate them into text.
The scientists also claim that the machine can now be engineered to work with any language and even use words they've never heard before.
David Moses, study director told The Sun: "No published work has shown a real-time classification of sets of neuronal signals."
"Given the [the machine] shown in this work and we are confident that it will be in the Able to serve as a platform for the proposed speech prosthetic device.
But critics fear that the device will cause problems when secret thoughts are unintentionally exposed.
Celebrity mind reader Uri Geller said, "I can imagine circumstances in which it can reveal some extremely embarrassing thoughts ,
"This will scare some people because we all have hidden secrets!"
The mind reader was developed at the University of California and its work is discussed in the Journal of Neural Engineering.