OpenAI invests $250M in BCI rival Merge Labs to challenge Neuralink

Sam Altman and OpenAI have entered the brain-computer interface (BCI) space with a significant $250 million investment in Merge Labs, a startup developing technologies that connect human brains with computers. The investment is part of a larger fundraising round by Merge Labs, which is seeking $250 million at an $850 million valuation, with most of the capital expected to come from OpenAI’s venture arm. Altman is closely involved in the project, working alongside Alex Kipman, a former Microsoft executive [1]. Merge Labs has not yet disclosed the specifics of its technology but plans to use the funds for research, development, clinical trials, and product scaling [2].

This move positions Merge Labs as a direct competitor to Elon Musk’s Neuralink, another BCI startup focused on bridging the human brain with digital systems. OpenAI’s entry into the space reflects a broader strategy to expand beyond artificial intelligence and into the next phase of human-machine interaction. The investment underscores growing interest in BCI technology, with major players now allocating significant capital to the field [3].

The development also intensifies the public rivalry between Altman and Musk, both of whom are influential figures shaping the future of technology. While Musk recently garnered attention for legal threats against Apple concerning App Store rankings and AI competition, Altman’s support for a competing BCI project marks another strategic move in their ongoing contest for technological influence [4].

The $850 million valuation of Merge Labs highlights strong confidence in the potential of BCI technology. OpenAI’s involvement adds credibility and resources, yet the commercial viability of such technologies remains uncertain. BCI is still largely in the research and development stage, and widespread adoption faces regulatory, ethical, and technical challenges [5].

If successful, Merge Labs could drive a new era of human augmentation, redefining interactions with digital systems. However, the path to mainstream use is complex and requires navigating multiple hurdles before such innovations can reach consumers [6].

The growing interest from OpenAI and Neuralink suggests that BCI is gaining recognition as a viable frontier in technology. While the long-term impact of these developments is unclear, the entry of major players into the space signals a shift toward more immersive and integrated human-machine interfaces.

---

Source:

[1] PYMNTS.com - [https://www.pymnts.com/news/investment-tracker/2025/openai-considering-investment-in-venture-to-connect-brains-and-computers/](https://www.pymnts.com/news/investment-tracker/2025/openai-considering-investment-in-venture-to-connect-brains-and-computers/)

[2] The Information - [https://www.theinformation.com/briefings/openai-back-neuralink-rival-merge-labs](https://www.theinformation.com/briefings/openai-back-neuralink-rival-merge-labs)

[3] Mitrade - [https://www.mitrade.com/au/insights/news/live-news/article-3-1033851-20250813](https://www.mitrade.com/au/insights/news/live-news/article-3-1033851-20250813)

[4] Financial Times - [https://www.ft.com/content/04484164-724e-4fc2-92a2-e2c13ea639bd](https://www.ft.com/content/04484164-724e-4fc2-92a2-e2c13ea639bd)

[5] breakingthenews.net - [https://breakingthenews.net/Article/Altman-said-to-back-Neuralink-rival-in-brain-tech-venture/64636911](https://breakingthenews.net/Article/Altman-said-to-back-Neuralink-rival-in-brain-tech-venture/64636911)

[6] Bloomberg - [https://www.bloomberg.com](https://www.bloomberg.com)