Altman-Backed BCI Startup Aims to Rival Musk's Neuralink

Compiled by the editorial desk with reference to official statements, public filings, and industry data.

OpenAI is reportedly weighing a significant investment in Merge Labs, a brain-computer interface (BCI) startup co-founded by CEO Sam Altman, according to a Financial Times report. The move would place Altman in direct competition with his long-time rival Elon Musk, whose company Neuralink has dominated the BCI space. Merge Labs is seeking an $850 million valuation, with OpenAI's ventures team and other investors reportedly interested.

Three unnamed insiders told the Financial Times that Altman is slated to help launch Merge Labs alongside Alex Bania, CEO and cofounder of World, the eyeball-scanning crypto venture. Altman will be named a cofounder of Merge Labs but will not invest his own money. The startup aims to leverage advances in artificial intelligence to build better BCIs, a goal that aligns with Neuralink's foundational mission.

Altman's Long-Standing Interest in Brain-Machine Interfaces

Altman's interest in BCI technology predates his current role. In a 2017 blog post, he speculated that humans might "merge" with machines by 2025, a prediction that inspired the startup's name. He also identified three inevitabilities: "superhuman AI is going to happen, genetic enhancement is going to happen, and brain-machine interfaces are going to happen."

Musk founded Neuralink in 2016 while he was still involved with OpenAI. He left OpenAI's board in 2018 following a clash with Altman over the company's direction. Since then, Musk has sued OpenAI multiple times, accusing it of abandoning its non-profit origins, even as he launched his own for-profit AI company, xAI, in 2023.

With Merge Labs, Altman appears to be escalating the rivalry, though Neuralink holds a substantial lead with a $9 billion valuation. Details about Merge Labs' technology and timeline remain scarce, but the investment signals a growing convergence of AI and neurotechnology.

As the BCI field heats up, the competition between Altman and Musk could accelerate innovation, but also raises questions about the ethical and regulatory implications of brain-machine interfaces.