OpenAI invests in Sam Altman’s BCI startup Merge Labs

On Thursday, Merge Labs emerged from stealth—operating without public disclosure—by announcing a $250 million seed round, an early-stage funding round, at an $850 million valuation. OpenAI invested in the brain-computer interface (BCI) startup, which is owned by OpenAI CEO Sam Altman.

Other investors participating in the funding round include:

• Bain Capital
• Interface Fund
• Fifty Years
• Gabe Newell

Merge Labs, which describes itself as a research lab dedicated to connecting biological and artificial intelligence to enhance human capabilities, intends to develop noninvasive BCI technologies. Instead of using electrodes, the company plans to connect with neurons using molecules. This approach positions Merge Labs against Neuralink, founded by Elon Musk, which requires invasive surgery to implant ultra-fine electrode threads into the brain. Neuralink’s technology is designed for people who suffer from severe paralysis, allowing them to control devices with their thoughts. Neuralink last raised a $650 million Series E at a $9 billion valuation in June 2025. Merge Labs’ co-founders include Alex Blania and Sandro Herbig of Tools for Humanity, an Altman-backed company; Tyson Aflalo and Sumner Norman of implantable neural tech company Forest Neurotech; and Mikhail Shapiro, a researcher at Caltech.

While medical applications exist for BCIs, Merge Labs seems focused on using technology to combine human biology with AI for superhuman capabilities, fulfilling a Silicon Valley fantasy. OpenAI stated in a blog post that brain-computer interfaces represent a significant new frontier that will allow users to seamlessly interact with AI. Under the deal, OpenAI will work with Merge Labs on foundation models—large-scale AI models trained on vast data. However, the arrangement could also allow Merge Labs to function as a remote control for OpenAI’s software. This development comes as OpenAI also works with io, an AI hardware startup founded by Jony Ive, to produce a screenless AI hardware device that might be an earbud.

The transaction adds to a pattern of deals for OpenAI, which has invested through its startup fund in other Altman-connected companies like Red Queen Bio, Rain AI, and Harvey, and has commercial agreements with Altman-owned energy startups Helion Energy and Oklo. The deal also mirrors Altman’s long-held interest in the concept of humans and machines merging. In 2017, Sam Altman, the CEO of OpenAI, wrote about the concept, stating, “Although the merge has already begun, it’s going to get a lot weirder.”

Why it matters

The investment creates a circular deal structure where Merge Labs could drive users to OpenAI, while OpenAI provides resources to a company Altman owns, deepening Altman’s competition with Elon Musk’s Neuralink.