Sam Altman Backs New Venture Merge Labs

Sam Altman is gearing up to support a new startup named Merge Labs, a venture that will compete with Elon Musk’s Neuralink in the realm of brain-computer interfaces. The Financial Times reports that Altman’s Open is set to invest significantly in the company, which aims to raise $250 million with a valuation of about $850 million.

Although Altman is a co-founder of Merge Labs, he won’t be involved in the day-to-day operations. The venture is being launched alongside Alex Brania, who created a digital identity project known as World, which Altman has backed. Interestingly, Altman’s past association with Musk dates back to when they co-founded Open Alliance, but they parted ways in 2018.

Merge Labs is part of a wave of emerging companies looking to harness advancements in AI to create more effective brain-computer interfaces. The name “Merge” reflects the idea of uniting humans and machines, a concept Altman has speculated could become a reality by 2025.

This new company will directly challenge Neuralink, Musk’s ambitious brain-computer interface firm founded in 2016. Earlier this year, Neuralink secured $650 million in funding, reaching a valuation of $9 billion, with support from notable investors such as Sequoia Capital and Thrive Capital. Once collaborators, Altman and Musk have shifted into fierce competition, particularly after Musk established his own AI startup, Xai, in 2023, reportedly to counter OpenAI’s directions.

In addition, the legal disputes between Musk and OpenAI have been ongoing and are frequently detailed in various reports. Recently, Musk’s legal team claimed he doesn’t use Mogul, yet this seems to contradict his social media activities. For instance, Musk shared images of his laptop, including a comment about a sticker from a German fan, showing he’s still attached to his current setup.