Sam Altman and OpenAI to Back 'Merge Labs': A New Rival to Elon Musk's Neuralink

Sam Altman, OpenAI will reportedly back a startup that takes on Musk's Neuralink | TechCrunch

Sam Altman is in the process of co-founding a new brain-to-computer interface startup called Merge Labs, and raising funds for it with the capital possibly coming largely from OpenAI's ventures team, unnamed sources told the Financial Times. The startup is expected to be valued at $850 million. A source familiar with the deal tells TechCrunch that talks are still early and OpenAI has not yet committed to participation, so terms could change. Merge Labs is also reportedly working with Alex Blania, who runs Tools for Humanity (formerly World) -- Altman's eye-scanning digital ID project that "allows anyone to verify their humanness," as the company describes. Merge Labs will compete with Elon Musk's Neuralink, which is developing computer interface chips designed to be implanted in the brain. Musk founded Neuralink in 2016 (although its existence wasn't known until 2017) and the company has made serious progress. Neuralink is currently in trials with people who suffer from severe paralysis. It aims to allow them to control devices with their thoughts. It raised a $600 million Series E at a $9 billion valuation in June. Neuralink (and perhaps, Merge Labs) could revolutionize how humans interact with technology. Some might even say their tech could take humanity towards "the singularity." Long before Silicon Valley became obsessed with the concept of artificial general intelligence (AGI), it was enamored with "the singularity." Musk has used the term to describe a time when AI surpasses human intelligence. The more classic definition (after a 1960's novella of the same name by Dino Buzzati), means the merging of tech with humans. Altman blogged about "The Merge" in 2017. "Although the merge has already begun, it's going to get a lot weirder. We will be the first species ever to design our own descendants," he postulated at the time citing research work he saw at OpenAI, where Musk was still a co-founder. Musk left OpenAI in 2018 and the relationship between the two tech leaders has since disintegrated. Just this week, Altman and Musk were bickering on X after Altman accused Musk of manipulating X and Musk called Altman a liar. We'll have to wait and see when and if Merge Labs becomes formally announced. But it stands to reason that Altman wasn't going to let Musk work on something as important as the singularity without a challenger.

Sam Altman's new startup wants to merge machines and humans

If you've enjoyed Elon Musk's ongoing beef with Sam Altman and OpenAI, get ready for a whole new chapter: soon they'll be rivals not just in AI, but in brain-computer interfaces too. The Financial Times reports that Altman and OpenAI are backing a new company called Merge Labs developing brain implants, making it a pretty direct rival to Musk's Neuralink. This has clearly been an interest of Altman's for a while though -- he wrote about "the merge" between humans and machines on his personal blog back in 2017, and connects it pretty directly to his work at OpenAI: The merge can take a lot of forms: We could plug electrodes into our brains, or we could all just become really close friends with a chatbot. But I think a merge is probably our best-case scenario.

OpenAI and Sam Altman are reportedly creating a startup rival to Elon Musk's Neuralink

Sam Altman is preparing to co-found a new company funded by OpenAI that will go up against Elon Musk's Neuralink, The Financial Post reported. The startup, called Merge Labs, will use AI for its brain-computer interface and compete directly with Neuralink, along with other nascent companies in the field like Precision Neuroscience and Synchron. The name Merge Labs comes from a term Altman used in 2017 called "the merge" that describes the moment human brains and computers come together. The company will raise funds, most from OpenAI's ventures team, that will set its valuation at $850 million. Altman will co-found Merge Labs with Alex Blania (from World, an eyeball scanning company also backed by OpenAI) but won't invest any capital himself, according to three people with direct knowledge of the project. Altman has been interested in the topic of machine-brain interfaces for years and suggested in the 2017 article above that the merge could arrive as soon as 2025 (it didn't). More recently, he wrote in another blog post a "high-bandwidth brain-computer interface" could soon be developed with the aid of recent tech advances. Altman's Merge Labs will be a direct competitor to Musk's Neuralink, intensifying the rivalry between the two that kicked off when Musk left OpenAI's board in 2018. Mind link technology has existed for decades now, but recent advances in implant tech and AI have allowed researchers to collect and process higher signal levels from the brain. Neuralink started its first human trials in January 2024 with quadriplegic subject Noland Arbaugh and later implanted its tech into a second anonymous subject. That subject, "Alex," has reportedly been able to play FPS games and create 3D designs, while suffering from fewer issues and side effects as Arbaugh.

Sam Altman is planning to rival Elon Musk's Neuralink

Sam Altman is plotting his next move against Elon Musk, with plans for a Neuralink competitor. OpenAI is planning to invest in a brain implant startup, the Financial Times reported Tuesday. The new company, called Merge Labs, aims to merge humans and machines together through artificial intelligence and is raising funds at a $850 million valuation, according to FT. The startup reportedly is aiming to raise $250 million in total investment and OpenAI's ventures team is expected to supply much of the new capital. Sources told the publication that Altman will cofound the company alongside Alex Blania, the cofounder and CEO of World, another OpenAI-backed startup that uses eyeball-scanning technology to provide an anonymous digital identification. However, Altman will not personally invest in Merge Labs. The company would be a direct competitor to Elon Musk's Neuralink, which also aims to connect computers and human brains through its brain chip implants. Last month, Musk told investors that he plans to implant 20,000 people a year with Neuralink chips by 2031. If successful, those implants will generate an estimated $1 billion in annual revenue for the company, Bloomberg reported. The two billionaire entrepreneurs, who founded OpenAI together, have been going head-to-head in the race to dominate the AI market. Musk left OpenAI in 2018 and went on to launch his own AI startup called xAI in 2023. Earlier this year, he sued OpenAI to block the company's transition from non-profit to a for-profit. On Monday, Musk claimed that Apple is violating antitrust laws by maintaining OpenAI as the top AI app on the App Store. "xAI will take immediate legal action," he wrote in a post on X. Altman replied to his post on X claiming that Musk manipulates X to "benefit himself and his own companies and harm his competitors and people he doesn't like."

Sam Altman to Back Brain Implant Start-up Rivalling Musk's Neuralink

Neuralink recently demonstrated how its brain-computer interface enables users to control video games using only their minds. OpenAI co-founder Sam Altman is preparing to back Merge Labs, a brain implant start-up, to compete with Elon Musk's Neuralink. Merge Labs aims to connect human brains to computers using recent advances in AI. The Financial Times reported, citing sources, that Altman is seeking to invest $250 million in Merge Labs, with much of it expected from OpenAI's ventures team. The venture, valued at $850 million, will be co-founded by Altman and Alex Blania, head of the World, a digital ID project for eye-ball scanning. Talks with potential investors are at an early stage, and Altman will not have a day-to-day role or make a personal investment, the report mentions. Altman also hinted at this new venture in his June blog post, writing, "true high-bandwidth brain-computer interfa

Sam Altman Challenges Elon Musk's Neuralink, Backs Rival Brain-Tech Venture Via OpenAI: Report

Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity Newsletter OpenAI, led by Sam Altman, is reportedly planning to invest in a new venture called Merge Labs, which will compete with Elon Musk's Neuralink in connecting human brains with computers. Sam Altman-Backed Merge Labs Targets $850 Million Valuation The new company, Merge Labs, is in the process of raising funds at an $850 million valuation, with a significant portion of the capital expected to come from OpenAI's ventures team, according to Financial Times. Altman, the co-founder of OpenAI, will assist in launching the project alongside Alex Blania, who oversees World, a digital ID project also supported by Altman. Altman, who will co-found the company, will not have a day-to-day role in the new project. Merge Labs is one of several young companies seeking to leverage recent advancements in artificial intelligence to develop more practical brain-computer interfaces. The company is seeking to raise $250 million from OpenAI and other investors, though talks are still in their early stages. The venture is set to directly compete with Neuralink, the brain-implant company Musk founded in 2016. SEE ALSO: Toyota, World's Top-Selling Automaker, Anticipates $9.5 Billion Profit Hit From Tariffs -- 'Very Difficult For Us To Predict What Will Happen' Altman-Musk Feud Intensifies Amid Apple-OpenAI Alliance The rivalry between Altman and Musk has been brewing for some time. Following Musk's exit from the OpenAI board in 2018 due to disagreements over the company's direction, Altman capitalized on the strained relationship between Musk and President Donald Trump, becoming Trump's key tech ally. This was a significant shift for Altman, who traditionally aligned with the Democrats. Musk criticized Apple's growing partnership with OpenAI and even threatened to sue the iPhone maker. Meanwhile, Altman dismissed the claims and accused Musk of using X to promote his own businesses and attack rivals. Neuralink Eyes 20+ Brain Implant Trials This Year Neuralink, currently at the forefront of brain-computer interface companies, secured $650 million earlier this year at a $9 billion valuation. Its backers include Sequoia Capital, Thrive Capital, and Vy Capital. Elon Musk praised Neuralink after it successfully implanted brain chips in two patients in a single day, bringing the total recipients to nine. He said the technology could help billions, enabling people with paralysis to walk again or dementia patients to recognize loved ones. Neuralink co-founder DJ Seo posted on X that the company aims to complete more than 20 BCI implant trials by year's end. READ MORE: As GPT-5 Launches, OpenAI Loyalists Pushed Altman for GPT-4o's Return, Citing Performance and Reliability Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

OpenAI, Sam Altman may fund brain-tech startup to take on Elon Musk's Neuralink: What we know so far

The feud between Altman and Musk has recently escalated with accusations over algorithm manipulation and App Store favoritism. Amid the ongoing feud between Elon Musk and Sam Altman, OpenAI is reportedly laying the groundwork for a new brain-computer interface startup that could compete with Musk's Neuralink. According to The Financial Times, the venture is called Merge Labs and is seeking funding at an estimated $850 million valuation. According to reports citing sources, OpenAI's venture arm could be involved, but the talks are still in the early stages, with no concrete agreements made at this time. The Merge Labs is expected to collaborate with Alex Blania, the head of Tools for Humanity, the company behind Altman's contentious eye-scanning ID initiative. The technology aims to create seamless communication between the human brain and computers, an area in which Musk's Neuralink has already made major strides. Musk's Neuralink, on the other hand, is valued at $9 billion following a $600 million raise in June and is currently testing its impact on people with severe paralysis to help them control devices solely through thought. Also read: Elon Musk accuses Apple of favoring OpenAI in App Store, says xAI will take legal action If this is true, the move will undoubtedly be a new chapter in the increasingly public feud between Altman and Musk, who co-founded OpenAI before splitting up in 2018. In recent days, they have traded barbs on X, with Altman accusing Musk of algorithmic manipulation and Musk responding with accusations of dishonesty and Musk accusing Apple of favouring the ChatGPT app on its App Store rankings. Altman has spoken for years about the possibility of humans "merging" with machines, which he believes is unavoidable as artificial intelligence advances. If Merge Labs becomes a reality, he may find himself in a race with Musk to see who can shape the future first. In the meantime, Apple has denied the claims and stated that the App Store algorithms treat all the AI applications. This comes after Musk accused Apple of keeping the ChatGPT app in the must-have section while excluding Grok.