OpenAI, led by Sam Altman, is reportedly planning to invest in a new venture called Merge Labs, which will compete with Elon Musk‘s Neuralink in connecting human brains with computers.
Sam Altman-Backed Merge Labs Targets $850 Million Valuation
The new company, Merge Labs, is in the process of raising funds at an $850 million valuation, with a significant portion of the capital expected to come from OpenAI’s ventures team, according to Financial Times. Altman, the co-founder of OpenAI, will assist in launching the project alongside Alex Blania, who oversees World, a digital ID project also supported by Altman.
Altman, who will co-found the company, will not have a day-to-day role in the new project. Merge Labs is one of several young companies seeking to leverage recent advancements in artificial intelligence to develop more practical brain-computer interfaces.
The company is seeking to raise $250 million from OpenAI and other investors, though talks are still in their early stages. The venture is set to directly compete with Neuralink, the brain-implant company Musk founded in 2016.
Altman-Musk Feud Intensifies Amid Apple-OpenAI Alliance
The rivalry between Altman and Musk has been brewing for some time. Following Musk’s exit from the OpenAI board in 2018 due to disagreements over the company’s direction, Altman capitalized on the strained relationship between Musk and President Donald Trump, becoming Trump’s key tech ally. This was a significant shift for Altman, who traditionally aligned with the Democrats.
Musk criticized Apple's growing partnership with OpenAI and even threatened to sue the iPhone maker. Meanwhile, Altman dismissed the claims and accused Musk of using X to promote his own businesses and attack rivals.
Neuralink Eyes 20+ Brain Implant Trials This Year
Neuralink, currently at the forefront of brain-computer interface companies, secured $650 million earlier this year at a $9 billion valuation. Its backers include Sequoia Capital, Thrive Capital, and Vy Capital.
Elon Musk praised Neuralink after it successfully implanted brain chips in two patients in a single day, bringing the total recipients to nine. He said the technology could help billions, enabling people with paralysis to walk again or dementia patients to recognize loved ones. Neuralink co-founder DJ Seo posted on X that the company aims to complete more than 20 BCI implant trials by year's end.
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