Sam Altman is co-founding a new brain-to-computer interface startup called Merge Labs, with funding likely coming from OpenAI’s ventures team, according to unnamed sources cited by the Financial Times. The startup is expected to be valued at $850 million, though discussions are still in early stages, and OpenAI has not yet confirmed its involvement.
Merge Labs is reportedly collaborating with Alex Blania, who leads Tools for Humanity, formerly known as World. This project, also backed by Altman, focuses on eye-scanning digital ID technology to verify human identity.
The startup will compete directly with Elon Musk’s Neuralink, which develops implantable brain-computer interface chips. Founded in 2016, Neuralink has advanced significantly and is currently conducting trials with individuals suffering from severe paralysis, aiming to enable thought-controlled devices. In June, Neuralink raised $600 million in a Series E round, valuing the company at $9 billion.
Both Neuralink and Merge Labs could redefine how humans interact with technology, potentially pushing humanity closer to “the singularity.” This concept, popularized in Silicon Valley long before the rise of artificial general intelligence (AGI), refers to a future where technology merges with human biology. Musk has frequently used the term to describe a point where AI surpasses human intelligence.
Altman himself wrote about “The Merge” in a 2017 blog post, predicting that humans would soon design their own evolutionary successors. At the time, he referenced research at OpenAI, where Musk was still a co-founder. However, Musk left OpenAI in 2018, and tensions between the two have since escalated. Recently, Altman and Musk publicly clashed on X, with Altman accusing Musk of manipulating the platform and Musk calling Altman a liar.
While Merge Labs has yet to be officially announced, it appears Altman is determined to challenge Musk in shaping the future of human-machine integration. OpenAI declined to comment on the matter.