• OpenAI is set to lead a $250 million funding round for Merge Labs at an $850 million valuation.
  • The startup, co-founded by Sam Altman and Alex Blania, aims to develop advanced brain-computer interface (BCI) technology.
  • The move intensifies competition with Elon Musk’s Neuralink, which recently began human trials.

OpenAI Backs New Neurotech Venture

OpenAI is in advanced discussions to invest heavily in Merge Labs, a new brain-computer interface (BCI) startup poised to compete directly with Elon Musk’s Neuralink, according to people familiar with the matter. The deal, spearheaded by OpenAI CEO Sam Altman, would see the AI giant’s venture arm contribute the majority of a $250 million funding round at an anticipated $850 million valuation.

Merge Labs, co-founded by Altman and Alex Blania—known for his work on the World digital ID project—aims to harness artificial intelligence to integrate human brains with computers. While Altman will not take a day-to-day operational role, he has been a vocal advocate for the project within OpenAI, signaling the company’s broader ambitions in neurotechnology.

A Growing Rivalry in BCI

The funding push comes as Neuralink, Musk’s high-profile BCI venture, recently raised $650 million at a $9 billion valuation and began human trials earlier this year. Merge Labs enters a crowded but rapidly evolving field, with competitors like Synchron and Precision Neuroscience also advancing less invasive brain implant technologies.

“The race to merge human cognition with AI is heating up,” said one investor briefed on the deal. “OpenAI’s backing gives Merge Labs instant credibility, but the regulatory and technical hurdles remain steep.”

Regulatory and Ethical Challenges

BCI technology faces scrutiny from global regulators, particularly around safety, privacy, and ethical concerns. The U.S. FDA’s recent clearance of Neuralink’s human trials could set a precedent for Merge Labs, though the startup has yet to disclose its timeline for clinical testing. Meanwhile, debates persist about the societal implications of neuro-AI integration, from medical breakthroughs to potential risks of data misuse.

OpenAI and Merge Labs declined to comment. Neuralink did not immediately respond to a request for comment.

Correction: An earlier version of this article misstated the valuation of Neuralink. It has been updated to reflect the correct figure.