OpenAI co-founder Sam Altman is preparing to back Merge Labs, a brain implant start-up, to compete with Elon Musk’s Neuralink.
Merge Labs aims to connect human brains to computers using recent advances in AI. The Financial Times reported, citing sources, that Altman is seeking to invest $250 million in Merge Labs, with much of it expected from OpenAI’s ventures team.
The venture, valued at $850 million, will be co-founded by Altman and Alex Blania, head of the World, a digital ID project for eye-ball scanning. Talks with potential investors are at an early stage, and Altman will not have a day-to-day role or make a personal investment, the report mentions.
Altman also hinted at this new venture in his June blog post, writing, “true high-bandwidth brain-computer interfaces the next year.”
OpenAI has not responded yet to queries sent by AIM.
Competition with Neuralink
The move will put Merge in direct competition with Neuralink, which raised $650mn earlier this year at a $9bn valuation. The rivalry between Musk and Altman dates back to 2018, when the former left OpenAI’s board following disagreements. Musk has since launched xAI and challenged OpenAI’s shift from non-profit status in court.
At Neuralink’s Summer 2025 update event, the company demonstrated how its brain-computer interface enables users to control video games, such as Mario Kart and Call of Duty, using only their minds.
Additionally, the company shared that seven participants have now been implanted with its brain-computer interface, Telepathy, marking steady progress in its human trials. The company has also received regulatory approval to begin trials in Canada, the UK, and the UAE, indicating its move toward international expansion.
Merge Labs is part of a growing group of companies using AI to improve brain-computer interfaces, a field where brain implants have existed for decades.
Advances in electronics and AI have brought the possibility of more practical applications. Altman has previously invested in several technology ventures, including nuclear projects Oklo and Helion, alongside co-founding World.