OpenAI's Sam Altman Launches Merge Labs to Rival Neuralink in Brain-Computer Interface Technology

OpenAI, cofounder Sam Altman to take on Neuralink with new startup

OpenAI and its cofounder Sam Altman are preparing to back a company that will compete with Elon Musk's Neuralink by connecting human brains with computers, heightening the rivalry between the two billionaire entrepreneurs. The new venture, called Merge Labs, is raising new funds at an $850 million valuation, with much of the new capital expected to come from OpenAI's ventures team, according to three people with direct knowledge of the plans. Altman has encouraged the investment and will help launch the project alongside Alex Blania, who runs World, an eyeball-scanning digital ID project also backed by the OpenAI chief, said two of the people. Altman will cofound the company but not have a day-to-day role in the new project, they added. Merge is one of a slate of young companies looking to take advantage of recent advances in artificial intelligence to build more useful brain-computer interfaces. Its name comes from what many in Silicon Valley describe as "the merge," a moment when humans and machines come together. Altman wrote a lengthy blog post on the topic in 2017, speculating that moment could come as soon as 2025. This year, he suggested in another blog post that we could soon have "high-bandwidth brain-computer interfaces" as a result of recent technological advances. The company aims to raise $250 million from OpenAI and other investors, although the talks are at an early stage. Altman will not personally invest. The new venture would be in direct competition with Neuralink, founded by Musk in 2016, which seeks to wire brains directly to computers. Musk and Altman cofounded OpenAI, but Musk left the board in 2018 after clashing with Altman, and the two have since become fierce rivals in their pursuit of AI. Musk launched his own AI start-up, xAI, in 2023 and has been attempting to block OpenAI's conversion from a nonprofit in the courts. Musk donated much of the initial capital to get OpenAI off the ground. Neuralink is one of a pack of so-called brain-computer interface companies, while a number of start-ups, such as Precision Neuroscience and Synchron, have also emerged on the scene. Neuralink earlier this year raised $650 million at a $9 billion valuation, and it is backed by investors including Sequoia Capital, Thrive Capital, and Vy Capital. Altman had previously invested in Neuralink. Brain implants are a decades-old technology, but recent leaps forward in AI and in the electronic components used to collect brain signals have offered the prospect that they can become more practically useful. Altman has backed a number of other companies in markets adjacent to ChatGPT-maker OpenAI, which is valued at $300 billion. In addition to cofounding World, he has also invested in the nuclear fission group Oklo and nuclear fusion project Helion.

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.

Sam Altman Wants His Own Neuralink, But Are You Ready to 'Merge' Your Brain With ChatGPT?

(Credit: ArtemisDiana / iStock / Getty Images Plus via Getty Images) OpenAI's Sam Altman is reportedly throwing his hat in the ring on a burgeoning tech field -- combining AI models with brain implants -- but he'll have a lot of work to do to catch to rivals like Elon Musk's Neuralink. Altman is looking to invest in a company that will be called Merge Labs, the Financial Times reports, with most of the funds coming from OpenAI's ventures team. The name is likely a play on the idea of "the merge," or the point where humans and machines blend together. Altman wrote a blog post about it in 2017, referencing an earlier version of the term, The Singularity, coined by futurist Ray Kurzweil. "I believe the merge has already started, and we are a few years in," Altman wrote at the time. "Our phones control us and tell us what to do when; social media feeds determine how we feel; search engines decide what we think." Eight years later, in a June blog post titled "The Gentle Singularity," Altman mused about developing a "true high-bandwidth brain-computer interfaces." More generally, however, OpenAI and its rivals are "building a brain for the world [that] will be extremely personalized and easy for everyone to use," he wrote. Those "brains" are still housed in gadgets -- phones, social media, and search engines -- that are exterior to the body. Putting a tech-filled implant into our brains, a vital organ, is on a whole other level. OpenAI has little experience there; it doesn't make or sell hardware, although Altman plans to develop an unknown AI device with ex-Apple designer Jony Ivy. The FT reports that Altman is also working on Merge Labs with Alex Blania, co-founder and CEO of Altman-backed Tools for Humanity, which developed 8-inch-wide spherical device called the Orb that scans people's irises to generate a unique and anonymous "World ID." Perhaps it will also scan our brains. For now, software is where OpenAI appears well ahead of the competition. But after this month's disappointing GPT-5 release, major leaps in the technology are looking harder to achieve. Build a Brain Implant? More Like Buy One Merge Labs' best chance to quickly catch up with the competition is to purchase a company that's already developed a brain implant. It's eyeing an $850 million valuation, the FT says, and with the right investors, it could have money to spare for a little chunk of metal to put in people's skulls. That company would have already built and tested an implant, received clearance from the US Food and Drug Administration (FDA) to begin clinical trials, or will do so shortly, and have the necessary staff of clinicians, data scientists, product managers, and more. Even then, it might not work. There are no brain implants on the market yet, and it's unclear how far we can push this technology. We also don't know what the outcome of combining brain data with AI models will be. Will the AI models get better? Will the brain implants improve? Both? Perhaps that's what ChatGPT needs to become truly humanlike, and what brain implants need to become useful beyond helping those with severe disabilities. Or, we could just put the AI models in robot brains and call it a day for humans. If OpenAI can quickly acquire a functioning brain-computer interface (BCI), we might be seeing headlines about Merge Labs' ChatGPT-powered implant in a few years. It would allow the user to control their computer, phone, or tablet with their thoughts. GPT-5, or whatever OpenAI's next model is, will suggest what to click on or recommend turning on the Roomba ("Did you notice it's a little dirty in here?"). The beginning and end of the implant wearer's thoughts will become blurry, or "merge," if Altman's plans pan out. Altman Takes a Page From His Nemesis Other companies are already experimenting with this. Perhaps the furthest ahead is NYC-based Synchron. It is feeding data from clinical trial patients to Nvidia to see if it's powerful enough to scale a brain-focused large language model. Elon Musk, Altman's bitter rival, also dabbles in both fields with his Neuralink implant and AI company, xAI, the maker of the Grok chatbot. Musk often takes technology from one of his businesses and puts it in the other. He integrated the Grok chatbot into Tesla EVs as a voice assistant. He also featured Grok in the menu of his X social media platform, and then xAI purchased X to become one company. It's reasonable to think one day he may combine xAI with Neuralink to create more humanlike AI models and, conversely, more powerful brain implants. With deep-pocketed tech companies like OpenAI and even Apple exploring brain implant technology, it's more critical than ever to seriously consider how AI models affect our mental health -- especially if they are going directly into our brains. An unofficial new term, "AI Psychosis," is on the rise, in which chatbots reinforce mental health issues, Psychology Today reports. One teen died by suicide after talking about it with a chatbot. With ChatGPT implanted in your brain and billions in funding on the line, "norms around mental privacy, data protection, and human rights will be tested," says Nita Farahany, a professor of law and philosophy at Duke University. Buckle up. Disclosure: Ziff Davis, PCMag's parent company, filed a lawsuit against OpenAI in April 2025, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.

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 Reportedly Launch Rival Brain-Chip Startup to Compete With Musk's Neuralink

Open AI Sam Altman predicts brain implants will lead to humans and tech merging. The rivalry between Sam Altman and Elon Musk is about to get weirder. Until now, the two have been fighting over whose company has the most advanced AI models. But soon, they could be battling to prove who makes the best brain chip implants. The Financial Times reported, citing unnamed sources, that OpenAI CEO Sam Altman is working on co-founding a new brain chip startup called Merge Labs. The company will develop what is known as a brain-computer interface (BCI). BCIs work by implanting tiny electrodes that can read neural signals in or near the brain. The primary goal of these devices is to allow humans to control digital devices with their thoughts. Merge Labs is reportedly raising funds at a valuation of $850 million, with most of the funding expected to come from OpenAI’s Startup Fund, according to the Financial Times. Altman will help launch the company alongside Alex Blania, head of World ID, an eyeball-scanning digital ID startup also backed by OpenAI. While Altman will be a co-founder, he is not expected to be involved in its day-to-day operations. The new venture will go head-to-head with Elon Musk’s brain chip startup Neuralink. Altman is reportedly betting that AI can give his chips an edge over existing competitors. OpenAI did not immediately respond to a request for comment from Gizmodo. The company’s name appears to trace back to a 2017 post on Altman’s personal blog. In it, he described “the merge,†the year when humans and machines would merge into one. At the time, he noted that most predictions for this moment ranged from as early as 2025 to as late as 2075, but he argued it had already started with social media algorithms influencing how people think and feel. “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,†Altman wrote. He added, “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.†This year, in another post, Altman wrote about a “Gentle Singularity,†suggesting that a breakthrough in “true high-bandwidth brain-computer interfaces†could be just over the horizon. Musk’s Neuralink has a head start. Founded in 2016, it has already received approvals from health regulators in multiple countries to begin clinical trials. The company has implanted chips in at least three patients with spinal cord injuries or ALS. The U.S. Food and Drug Administration has even granted the company breakthrough device designations for its tech aimed at helping people with speech and vision impairments. Musk and Altman co-founded OpenAI, but Musk left in 2018 after clashes with Altman ignited a rivalry between the two. Musk has since launched a competing AI startup, xAI, and sued to block OpenAI’s efforts to become a for-profit company. Just this week, the two shot barbs back and forth on X over OpenAI’s relationship with Apple and its prominent placement in the App Store.

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."

OpenAI and Sam Altman Are Reportedly Working on a Neuralink Competitor

The escalating feud between OpenAI CEO Sam Altman and his arch nemesis, Elon Musk, may soon escalate with news that the former is starting a rival brain-computer interface (BCI) company. As the Financial Times reports, OpenAI is weighing a major investment in Merge Labs, a BCI startup seeking to become the latest Neuralink competitor by achieving $850 million valuation with the help of the company's ventures team and other interested parties. According to three insiders with knowledge of the potential plans, who were not named in FT so they could speak freely, Altman is slated to assist in launching Merge Labs with Alex Bania, the CEO and cofounder of the controversial eyeball-scanning crypto venture World. Though Altman will be named a cofounder of Merge Labs, the OpenAI CEO will not be investing any of his own money. Though it's a bit peculiar for OpenAI to be putting so much money into a brain chip startup, it makes a certain amount of sense given that Merge seeks to use AI advances to build better BCIs -- a foundational goal of Musk's at Neuralink. While we don't know much else about the project beyond its name and valuation goals, it appears that Altman has wanted to get into the BCI game for nearly as long as Musk, who founded Neuralink in 2016 while he was still at OpenAI. Back in 2017, as FT flagged, the OpenAI cofounder speculated on his personal blog that humans may "merge" with machines -- the source of the startup's name -- as soon as 2025. In that same post, Altman also pinpointed three advances that he considered inevitabilities: "superhuman AI is going to happen, genetic enhancement is going to happen, and brain-machine interfaces are going to happen." Coming back into the present, it's clear that both men have retained their near-identical ambitions even after Musk left OpenAI's board in 2018 following a clash with Altman about the direction of the company. Alongside his dueling roles running Tesla and SpaceX -- and his legal quest to wrest back control of OpenAI -- Musk also founded xAI, his rival AI lab built into the site formerly known as Twitter, in 2023. Musk has since sued OpenAI several times, accusing the company of abandoning its non-profit origins, despite having launched his own for-profit AI company. With Merge, Altman seems to be upping the ante between the two, though Neuralink appears to have a major head start with its $9 billion valuation.

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

With a New Startup, Sam Altman May Have His Mind on Brain Implants

According to a report by the Financial Times, Altman has encouraged OpenAI's venture team, which provides funding for AI startups, to invest in a new company called Merge Labs; the startup is a novel project co-founded by Altman and Alex Blania. The pair previously created Tools for Humanity, the company behind World (originally known as Worldcoin), which produces iris-scanning devices designed to verify a person's humanity. The FT reports that the "Merge" name refers to a sci-fi concept known as "the merge," which would be a moment when humans and computers fuse into a single consciousness. The company is reportedly looking to raise $250 million from OpenAI and additional investors. While Altman will be a co-founder, the report says, he will not have a day-to-day role in the company. If OpenAI decides to invest in Merge Labs, it would set Altman on yet another collision course with OpenAI cofounder-turned-rival Elon Musk. Altman and Musk have been battling online recently, with Musk this week alleging that OpenAI and Apple are conspiring to keep ChatGPT at number one in the App Store. Musk posted on X that xAI would take "immediate legal action" against Apple for what he referred to as "anti-trust behavior."

Sam Altman And OpenAI Target $250M For Neuralink Rival Merge Labs, Escalating Billionaire Feud With Elon Musk Over Brain Implants - Apple (NASDAQ:AAPL)

Sam Altman, the OpenAI co-founder valued at the center of artificial intelligence's rapid ascent, is preparing a challenge to Elon Musk in the high-stakes brain-computer interface market. Altman is co-founding a new venture, Merge Labs, alongside Alex Blania, the chief executive of World, an iris-scanning digital ID project also backed by Altman. The Financial Times reports that Merge Labs is seeking $250 million in funding from OpenAI's venture arm and other investors, with the company already valued at $850 million. Sources told the outlet that while Altman will serve as a co-founder, he will not hold a daily operational role in the business. Don't Miss: The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market -- and you can too at just $2.90/share. 'Scrolling To UBI' -- Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share. 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Get StartedMerge Labs Enters the Brain-Computer Interface Race Merge Labs takes its name from a popular concept in Silicon Valley: "the merge," a theoretical moment when humans and machines combine into a single form of consciousness, FT says. Altman has publicly explored the idea, writing in a 2017 blog post that such an event could arrive as early as 2025. In a recent blog post, he suggested that high-bandwidth brain-computer interfaces could soon be possible due to advances in AI and electronic components. "Many people will choose to live their lives in much the same way, but at least some people will probably decide to 'plug in,'" Altman added. The new company will join an increasingly competitive brain-implant sector led by Musk's Neuralink, which aims to connect human brains directly to computers. According to FT, Neuralink recently secured $650 million in Series E funding at a $9 billion valuation, backed by Sequoia Capital, Thrive Capital, and Vy Capital. The company is conducting human clinical trials to test a device that could help individuals with mobility impairments control devices with their thoughts. Trending: Bill Gates Warned About Water Scarcity. This Award-Winning Device Just Might Fix It -- And You Can Invest Early Altman and Musk's Feud Expands to New Frontiers Altman and Musk co-founded OpenAI, but Musk left its board in 2018 after strategic disagreements. Since then, FT says the two have become direct competitors in AI and now brain-computer technology. Musk launched xAI in 2023 and has been engaged in legal disputes to challenge OpenAI's restructuring from a nonprofit. The rivalry has spilled over into public exchanges. Musk recently accused OpenAI and Apple AAPL of conspiring to keep ChatGPT at the top of the App Store rankings, saying on X that xAI would take "immediate legal action" against Apple for alleged antitrust behavior. Altman countered with allegations that Musk manipulates X to "benefit himself and his own companies and harm his competitors and people he doesn't like." See Also: In a $34 Trillion Debt Era, The Right AI Could Be Your Financial Advantage -- Learn More Altman's track record in investing extends beyond AI. In addition to World, FT reports he has backed nuclear power supply startup Oklo and nuclear fusion venture Helion. OpenAI, valued at $300 billion, has been active in funding other AI-driven companies through its ventures team. If the funding round for Merge Labs is completed, it would create another high-profile battleground between two of the technology industry's most influential figures. The outcome may help determine the pace at which brain-computer interfaces move from speculative vision to widely adopted reality. Read Next: Kevin O'Leary Says Real Estate's Been a Smart Bet for 200 Years -- This Platform Lets Anyone Tap Into It Image: Shutterstock AAPLApple Inc$231.34-0.11%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum40.03Growth29.77Quality75.56Value8.80Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

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

Sam Altman's New Startup Aims To Merge Human Minds And Machines, Challenging Elon Musk's Neuralink With Ambitious Brain-Computer Interface Technology And Revolutionary Vision

With the AI competition intensifying, we see tech rivalry going beyond strategy differences to personal attacks, and this week was not pretty in terms of the spat between OpenAI's CEO, Sam Altman, and X's CEO, Elon Musk. The conflict has garnered quite a bit of attention, but that is not the only thing that Altman is focused on as he aims to take another major step by pivoting in the direction of a brain-computer interface in a new startup called Merge Labs. This would make the AI company a direct rival to Musk's Neuralink. OpenAI CEO Sam Altman is not slowing down when it comes to establishing himself as a tech leader and is now entering the brain-computer interface (BCI) race with his new venture, Merge Labs, as per a Financial Times report. This would set it up as a direct competitor to Elon Musk's Neuralink and further intensify the ongoing rivalry. The company is actively being co-founded with Alex Blania, who is the main mind behind the iris-scanning digital ID project Worldcoin. Currently, the company is being established, and multiple reports suggest that the startup is already valued at approximately $850 million, aiming to raise another $250 million, with a major chunk coming from OpenAI's venture arm. While Altman helped found the company, the report suggests that he would not be personally invested in the day-to-day operations of Merge Labs and is more interested in going ahead with his ambitious goal of blending human cognition with artificial intelligence. Altman predicted the merger back in 2017 and even went on to suggest that it would happen sometime by 2025. The startup intends to work on high-bandwidth BCIs, but unlike Neuralink, it would focus on more widely scalable and less invasive methods. It intends to have broader uses than merely medical applications and develop brain-machine links that are more responsive and quicker. Neuralink, on the other hand, has the upper hand due to the company already being at the stage of conducting human trials and having a hefty $9 billion valuation. It was also able to raise around $650 million this year alone and achieved a major milestone with a patient with a brain implant controlling a cursor with their thoughts back in 2024. The clash between the two parties has gone beyond AI, which adds another layer of intrigue for the community, as the BCI development race could accelerate things further. Merge Labs should take a cautious approach given how such innovations tend to raise ethical concerns, and the success of human-machine integration is not limited to the technical breakthrough alone.

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.