Tech giants face off in race to develop advanced brain-computer interfaces

OpenAI co-founder Sam Altman is preparing to challenge Elon Musk’s Neuralink with a new brain implant company called Merge Labs, aiming to connect human brains directly with computers.

The move intensifies the rivalry between the two tech billionaires, both of whom have a history of collaboration and competition in the AI space, Caliber.Az reports, citing foreign media.

Merge Labs is currently raising funds at an $850 million valuation, with a significant portion of the capital expected to come from OpenAI’s ventures team, according to sources familiar with the plans. Altman has encouraged the investment and will help launch the project alongside Alex Blania, who leads World, a digital ID initiative also backed by Altman. While Altman will co-found Merge Labs, he will not be involved in its daily operations.

The startup is among several emerging companies aiming to leverage recent advancements in artificial intelligence to develop more sophisticated brain-computer interfaces. The company’s name refers to “the merge,” a concept popular in Silicon Valley describing the fusion of humans and machines. Altman has long speculated on this moment, writing in a 2017 blog post that it could happen as early as 2025. He reiterated the possibility of “high-bandwidth brain-computer interfaces” this year, driven by recent tech breakthroughs.

Merge Labs intends to raise $250 million from OpenAI and other investors, though talks remain preliminary. This venture will directly compete with Neuralink, Musk’s brain-computer interface company founded in 2016, which aims to wire human brains to computers.

Altman and Musk, who co-founded OpenAI, have become fierce rivals since Musk’s 2018 departure from its board. Musk’s own AI startup, xAI, launched in 2023, and he has recently sought to block OpenAI’s shift from nonprofit status in court.

Neuralink leads the brain-computer interface sector, having raised $650 million earlier this year at a $9 billion valuation, backed by Sequoia Capital and others. Altman had previously invested in Neuralink.

While brain implants have existed for decades, recent advances in AI and brain-signal processing hardware have opened new possibilities for practical applications.

Altman has also backed projects adjacent to OpenAI, including the digital ID firm World and nuclear energy startups Oklo and Helion.

By Vafa Guliyeva