Sam Altman Nears $850M Brain Computer Startup Merge Labs

Altman Moves into Brain Computer Interfaces with Merge Labs

Sam Altman is in the early stages of co-founding a brain-to-computer interface startup called Merge Labs, and is raising capital that may come largely from OpenAI’s ventures arm, two sources told the Financial Times. The startup is reportedly being pitched at an $850 million valuation.

TechCrunch reports the conversations are still early and OpenAI has not committed, so terms could change. Merge Labs is said to be working with Alex Blania, who runs Tools for Humanity — the eye‑scanning digital ID project tied to Altman’s earlier work.

Merge Labs would enter a field already energized by Elon Musk’s Neuralink. Founded in 2016 and publicly visible since 2017, Neuralink has progressed to human trials for people with severe paralysis and raised a $600 million Series E at a reported $9 billion valuation in June.

At stake is more than hardware: these companies are racing to change how humans interact with computers — from medical prosthetics and accessibility tools to augmented reality and productivity interfaces. Some observers frame this as a step toward the long‑debated concept of the "singularity" or the deeper merge of humans and technology.

The personal rivalry between Altman and Musk adds fuel to the story. The two have publicly traded barbs this week, and it’s not surprising that Altman would back a challenger if he sees Neuralink progressing on such an important frontier.

This is still early‑stage news: OpenAI declined to comment and sources stress terms could shift. Whether Merge Labs launches with the reported valuation or funding structure, its emergence signals growing investor appetite and a larger, faster BCI race.

The potential impacts are wide‑ranging. Consider the near-term and systemic effects:

• Medical rehabilitation and prosthetics: restore function for paralysis and sensory loss.
• Accessibility and communication: new interfaces for people with disabilities to control devices and compose text.
• Augmented reality and productivity: seamless control layers that blur the line between thought and action.
• Privacy, security and regulation: new vectors for abuse, surveillance, and complex approval pathways.

For companies, hospitals, investors and regulators, the emergence of Merge Labs means reassessing strategy now rather than later. Questions to ask include technical maturity, clinical evidence requirements, data governance models, and how to structure partnerships to share both upside and liability.

QuarkyByte’s approach to this kind of story is pragmatic: model adoption scenarios, map regulatory paths across jurisdictions, and quantify clinical and security tradeoffs so boards and clinical leaders can decide with clarity. Whether your organization is assessing a clinical trial partner or sizing an investment, early modeling reduces downstream surprises.

Merge Labs hasn’t been formally announced, and the details could change. But the signal is clear: BCI work is drawing deep pockets and ambitious founders. The next few quarters will show whether competition between Altman and Musk accelerates safe, useful products or just a louder arms race.