Altman Backs New Brain-Chip Startup to Rival Neuralink

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Altman Backs New Brain-Chip Startup to Rival Neuralink

OpenAI and its CEO, Sam Altman, are reportedly backing a fresh venture called Merge Labs, designed to compete directly with Elon Musk’s Neuralink. According to sources quoted by the Financial Times, Merge Labs is currently in early-stage fundraising, targeting a valuation of around $850 million. The majority of funding is expected to come from OpenAI’s venture team—though nothing is finalized yet. Altman is involved as a co-founder but will not take part in day-to-day operations or invest personally.

Why Merge Labs Matters—and Its Strategic Ties

Merge Labs isn’t flying solo—it’s aligning with Alex Blania, the CEO behind Tools for Humanity (formerly World), known for its iris-scanning digital ID services. This strategic tie links Merge Labs to a broader ecosystem of forward-thinking tech within OpenAI’s orbit.

The Stakes: Advancing Human–AI Integration

Merge Labs is entering a high-stakes battlefield where Neuralink currently dominates. That company, founded by Musk in 2016, is advancing implantable brain–computer chips meant to empower people with paralysis to control computers through thought. Neuralink’s latest funding round valued it at about $9 billion, following a successful Series E.

This rivalry adds another layer to the longstanding competition between Musk and Altman. Once allies in founding OpenAI, their paths diverged after Musk’s board exit in 2018, leading to sharp disagreements and now direct competition in AI and brain interface innovation.

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