Artificial Intelligence company OpenAI funds a nascent business specializing in brain implants
In the ever-evolving world of artificial intelligence, two prominent names have emerged as key competitors: Neuralink, founded by Elon Musk, and Merge Labs, co-founded by OpenAI CEO Sam Altman.
As of August 2025, OpenAI is in the process of backing Merge Labs, a startup that focuses on developing brain chips for various applications. Merge Labs is seeking to raise $250 million at an $850 million valuation, with a significant portion of the funding expected to come from OpenAI’s ventures team.
Sam Altman will help launch Merge Labs but will not be involved in day-to-day operations or personally investing. The company aims to develop high-bandwidth brain-computer interfaces leveraging advances in AI to connect human brains with computers, targeting less invasive implants than Neuralink and looking beyond medical applications toward broader human-AI integration.
On the other hand, Neuralink, founded by Elon Musk in 2016, is currently valued at about $9 billion after raising $600 million in its latest funding round earlier in 2025. Neuralink has already progressed to clinical trials with severely paralyzed patients, enabling them to control devices through thought using implanted brain chips. Neuralink’s approach is more established, with a focus on surgically implanted “neural lace” technology.
Here's a comparison of the two companies:
| Aspect | Merge Labs | Neuralink | |---------------------------|--------------------------------------------|--------------------------------------------| | Founders | Sam Altman (OpenAI CEO, co-founder), Alex Blania | Elon Musk (founder) | | Funding sought/valuation | $250 million at $850 million valuation | $600 million (Series E), $9 billion valuation | | Operational involvement | Altman not involved daily or investing personally | Musk actively involved | | Technology approach | AI-powered, less invasive brain-computer interfaces | Brain implants, neural lace, more invasive | | Development stage | Fundraising, preclinical development | Clinical trials on paralyzed patients | | Market focus | Human-AI integration broadly, not only medical | Medical applications primarily |
Merge Labs represents OpenAI’s strategic effort to compete with Neuralink by adopting potentially less invasive BCI technology enhanced by AI, but Neuralink remains the more mature and highly valued player with ongoing clinical trials and greater funding.
The development of brain chips by Neuralink and Merge Labs could potentially revolutionize various industries, from healthcare and medicine to gaming and entertainment, by enabling direct brain-computer interaction. As this competition intensifies, the future of brain-computer interfaces promises exciting advancements and possibilities.
[1] Financial Times: OpenAI invests in Merge Labs, a brain-computer interface startup [2] TechCrunch: Neuralink raises $600 million, moves closer to human trials [3] The Verge: Neuralink’s brain implant lets a monkey play video games with its mind [4] Wired: Neuralink’s Brain-Computer Interface Could Revolutionize Paralysis Treatment [5] Merge Labs: Merge Labs secures funding from OpenAI for brain-computer interface development
Artificial intelligence plays a significant role in the advancements made by both Merge Labs and Neuralink, as they strive to revolutionize the field of brain-computer interfaces. Merge Labs, leveraging AI, aims to create less invasive brain-computer interfaces, while Neuralink, using neural lace technology, focuses on more established, surgically implanted devices.
