Sam Altman, CEO of OpenAI, is reportedly co-founding a new brain-to-computer interface startup named Merge Labs, which is expected to directly compete with Elon Musk’s Neuralink. Sources close to the matter have indicated to the Financial Times that OpenAI’s ventures team may provide a significant portion of the funding for Merge Labs, though a TechCrunch source notes that discussions are still in early stages and terms could change as OpenAI has not yet formally committed.
Merge Labs is projected to achieve a valuation of $850 million. The startup is also said to be collaborating with Alex Blania, who leads Tools for Humanity, Altman’s digital ID initiative focused on verifying human identity through eye-scanning technology.
The new venture sets the stage for a head-to-head competition with Elon Musk’s Neuralink, a company he founded in 2016 (publicly known since 2017). Neuralink is actively developing implantable computer interface chips designed to allow individuals, particularly those with severe paralysis, to control devices using their thoughts. Neuralink recently secured $600 million in Series E funding in June, valuing the company at $9 billion.
Both Neuralink and the nascent Merge Labs aim to revolutionize human interaction with technology, with some speculating their advancements could lead humanity towards “the singularity.” This concept, which predates the current obsession with artificial general intelligence (AGI), refers to a point where AI surpasses human intelligence or, more classically, the merging of technology with humans. Altman himself blogged about “The Merge” in 2017, contemplating a future where humanity designs its own descendants, drawing inspiration from research at OpenAI, where Musk was then a co-founder.
Musk departed OpenAI in 2018, and the relationship between the two tech titans has since deteriorated. Their recent public exchange on X (formerly Twitter) saw Altman accuse Musk of manipulation, to which Musk responded by calling Altman a liar. While the formal announcement of Merge Labs is pending, it appears Altman is poised to challenge Musk in the critical domain of human-technology integration, particularly concerning the concept of the singularity. OpenAI has declined to comment on the matter.




