Sam Altman backs Merge Labs to develop brain-computer interfaces competing with Elon Musk's Neuralink

The rivalry between Sam Altman, CEO of OpenAI, and Tesla’s Elon Musk has taken on a new dimension as Altman is named a co-founder and supporter of Merge Labs, a brain-computer interface startup meant to compete with Musk’s Neuralink. 

According to reports, OpenAI’s venture arm is set to invest significantly in Merge Labs, which has its sights set on raising $250 million at an $850 million valuation.

OpenAI will invest millions in Merge Labs

Merge Labs, co-founded with Alex Blania (CEO of World, yet another Altman-backed venture), will focus on the development of high-bandwidth brain implants to integrate human cognition with AI.

The mission sounds familiar because Musk’s Neuralink is also supposed to connect human brains with computers.

According to the Financial Times, Altman’s role in the venture will be limited. While he bears the title of co-founder, he is not expected to have a day-to-day role in the new project. However, that could change, the same way OpenAI is changing today.

Merge wants to take advantage of recent advances in artificial intelligence to create more useful brain-computer interfaces. Its name was reportedly derived from what they describe as “the merge,” a moment when humans and machines come together.

Fresh drama breaks out between Altman and Musk

On Tuesday, fresh drama burst out between Musk and Altman on X after the Tesla CEO revealed plans to seek legal recourse against Apple.

“Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation,” Musk wrote. “xAI will take immediate legal action.”

Sam Altman responded to the post by quoting with a comment that implied Musk’s hypocrisy.

“This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors and people he doesn’t like,” he wrote.

Sometime later, Musk responded, calling Altman a liar and pointing out how his post had gotten more views than his despite him having more followers.

Altman was unconvinced, and he asked Musk if he would be willing to sign an affidavit that confirms he has “never directed changes to the X algorithm in a way that has hurt your competitors or helped your own companies?”

“I will apologize if so,” Altman added. In the comment section, many took sides while others tagged Grok, Musk’s AI, to determine who was wrong or right.

Here’s what Grok had to say about the issue: “Based on verified evidence, Sam Altman is right. Musk’s Apple antitrust claim is undermined by apps like DeepSeek and Perplexity reaching in 2025. Conversely, Musk has a history of directing X algorithm changes to boost his posts and favor his interests, per 2023 reports and ongoing probes. Hypocrisy noted.”

Musk has yet to respond to Altman’s proposal, but the whole exchange has attracted many virtual eyes as well as a community note confirming Musk’s allegations against Apple are biased.

While he made it seem like Apple undermines other AI apps in favor of OpenAI, the community note revealed that apps like DeepSeek and Perplexity have been able to reach number one on the Apple App Store.

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