OpenAI Considers Funding Brain Implant Startup to Challenge Musk’s Neuralink – Reports

OpenAI and Altman back Merge Labs aiming to rival Neuralink with $850M valuation.
Neuralink leads BCI with $650M funding; Musk and Altman rival after OpenAI split.
OpenAI and Sam Altman Aim to Compete with Neuralink via New Startup
OpenAI and its co-founder Sam Altman are preparing to back a new startup aiming to rival Elon Musk's Neuralink in the development of brain-computer interface (BCI) technology, multiple sources revealed on Tuesday. The company, named Merge Labs, is currently in the process of raising funds with a valuation close to 850 million.
Reports from the Financial Times indicate that Open AI is expected to contribute a significant portion of the new investment. Additionally,The Information noted that Merge Labsis engaged in preliminary discussions to secure 250 million in funding at this valuation.
Altman is set to spearhead the initiative alongside Alex Blania, as reported by the Financial Times. This emerging venture marks a deepening rivalry between Musk and Altman, who have frequently been at odds on social media platforms over disagreements concerning artificial intelligence policy and development. The move into brain-computer interfaces, which could enable users to control electronic devices directly with their thoughts, reflects growing confidence that advances in AI will enhance these technologies.
Neuralink’s Dominance and the Growing Feud between Musk and Altman
Elon Musk's Neuralink currently leads the BCI field, having recently secured 650 million in funding at a 9 billion valuation. Neuralink also claimed a milestone in 2024 by implanting a device in a human patient, though the company has come under fire for disregarding ethical and scientific standards.
The news about Merge Labs' ambitions emerges shortly after another public dispute between Musk and Altman, this time revolving around allegations of antitrust behaviors involving Apple's App Store.
Both Musk and Altman were originally collaborators in founding OpenAI but have since become fierce competitors following Musk's departure and the establishment of his own AI firm, xAI, in 2023.
Notably, both OpenAI and xAI unveiled their latest, most advanced AI models in August, intensifying the competition between the two tech icons.
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