Sam Altman's Merge Labs raises $252 million to develop non-invasive brain-computer interfaces

Reviewed byNidhi Govil

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Sam Altman's brain-tech startup Merge Labs emerged from stealth with $252 million in seed funding at an $850 million valuation, with OpenAI writing the largest check. The company aims to connect human brains to computers using ultrasound and molecules instead of invasive electrodes, intensifying competition with Elon Musk's Neuralink in the race to enhance human capabilities through AI-powered neural interfaces.

OpenAI Investment Fuels Sam Altman's Brain-Tech Startup

Merge Labs emerged from stealth on Thursday with a $252 million seed round at an $850 million valuation, marking one of the most significant funding events in the brain-computer interfaces sector

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. OpenAI wrote the largest single check in the round, with additional backing from Bain Capital and Valve co-founder Gabe Newell, who runs his own brain tech company, Starfish Neuroscience

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. The OpenAI investment deepens the circular relationship between the AI giant and its CEO Sam Altman, who co-founded Merge Labs alongside Alex Blania and Sandro Herbig from Tools for Humanity, Tyson Aflalo and Sumner Norman from Forest Neurotech, and Caltech researcher Mikhail Shapiro

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Source: Tom's Hardware

Source: Tom's Hardware

Non-Invasive Brain-Computer Interfaces Using Ultrasound and Molecules

Merge Labs distinguishes itself by developing non-invasive brain-computer interfaces that avoid implants into brain tissue, contrasting sharply with the competition with Neuralink. The company plans to connect human brains to computers using molecules instead of electrodes and transmit information through deep-reaching modalities like ultrasound

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. This ultrasound-based approach interprets neural activity indirectly by detecting changes in blood flow rather than measuring electrical activity directly from neurons

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. Co-founder Mikhail Shapiro acknowledged that this non-invasive route requires solving hard scientific and engineering problems, which is why the $252 million will effectively establish a research lab rather than a product-ready company

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Source: SiliconANGLE

Source: SiliconANGLE

AI Operating Systems to Enhance Human-AI Interaction

OpenAI will collaborate with Merge Labs on scientific foundation models and other frontier tools to accelerate progress in bioengineering, neuroscience, and device engineering

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. The company envisions interfaces that are "equal parts biology, device, and AI" to create seamless human-AI interaction

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. AI operating systems will interpret intent, adapt to individuals, and operate reliably with limited and noisy signals—critical capabilities for non-invasive technology that generates less precise data than implanted electrodes

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. This approach could position Merge Labs as a remote control for OpenAI's software, potentially driving more users to the AI platform and justifying the circular investment structure

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Source: TechCrunch

Source: TechCrunch

Intensifying Rivalry Between Sam Altman and Elon Musk

The launch of Sam Altman's brain-tech startup intensifies his rivalry with Elon Musk, whose Neuralink raised a $650 million Series E at a $9 billion valuation in June 2025

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. Neuralink has raised $1.3 billion total and currently requires invasive surgery where a surgical robot removes skull fragments and inserts ultra-fine electrode threads into the brain

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. At least 12 volunteers have received Neuralink implants, while Chinese competitors are advancing rapidly with government support

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. Altman previously invested in Neuralink before the business partners split following disagreements at OpenAI, which both co-founded

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The Vision to Enhance Human Capabilities and Survive Superintelligence

Merge Labs plans to first develop products for medical use before targeting the general public to enhance human capabilities

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. Morgan Stanley estimated the total addressable market for brain-computer interfaces at around $400 billion in the US alone, primarily for medical applications focused on paralysis and neurological conditions

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. Altman has been contemplating "the merge"—the idea that humans and machines will combine—since at least 2017, speculating it would occur between 2025 and 2075

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. He described this fusion as humanity's "best-case scenario" for surviving against superintelligence, writing that "we will be the first species ever to design our own descendants"

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. Merge Labs concedes the project may take "decades rather than years," raising questions about whether OpenAI can sustain such long-term bets given its projected $74 billion operating loss in 2028

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