OpenAI to Invest in $250M Brain-Computer Startup Competing with Neuralink

The ongoing tech rivalry between Sam Altman and Elon Musk is expanding into brain-computer technology. Industry sources confirm that Sam Altman is developing plans to back a brain-to-computer interface startup to rival Musk’s Neuralink, TechCrunch reported.

The startup, called Merge Labs, is raising funds, primarily from OpenAI Ventures, and is expected to be valued at $850 million. Merge Labs will compete with Elon Musk’s Neuralink, which develops brain-implant computer interface chips. Neuralink is testing the technology with people suffering from severe paralysis to help them control devices using their thoughts. Musk’s company raised $600 million in Series E funding in June, valuing it at $9 billion.

OpenAI’s Strategic Investment

OpenAI backing a new startup signals a major expansion beyond artificial intelligence software into hardware and biological interfaces. OpenAI is reportedly planning to invest in a brain implant startup called Merge Labs. The venture aims to merge humans and machines through artificial intelligence.

The investment represents more than just financial backing. Sam Altman’s involvement brings significant expertise in AI development and scaling technology companies. This combination could give Merge Labs advantages in developing smarter brain-computer interfaces.

Technology Focus and Innovation

Merge Labs’ brain-computer interface technology aims to develop systems that allow people to control devices with their thoughts. Merge Labs would join a growing number of companies, including Elon Musk’s Neuralink, that are developing technology.

The company plans to leverage artificial intelligence in ways that could differentiate it from existing competitors. By combining OpenAI’s expertise with brain interface technology, Merge Labs could create more sophisticated and intuitive systems than current offerings.

The Altman-Musk Rivalry Expands

The rivalry between Sam Altman and Elon Musk has taken on a new dimension as Altman is named a co-founder and supporter of Merge Labs. This rivalry has been building for years across multiple technology sectors. Previously, the two tech leaders clashed over AI safety and development approaches. Now their competition extends to brain-computer interfaces, one of the most promising frontier technologies.

Merge Labs AI venture has attracted attention from major investors beyond OpenAI. The $250 million funding target suggests strong confidence in the team and technology approach. This level of investment indicates serious expectations for competing with established players like Neuralink.

The success of Merge Labs could also validate different approaches to brain-computer interface development, potentially opening new research directions and applications that benefit the entire field.