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OpenAI To Back $850M Brain-Computer Startup Competing With Musk’s Neuralink

Image by David Matos, from Unsplash

OpenAI To Back $850M Brain-Computer Startup Competing With Musk’s Neuralink

Reading time: 2 min

Last Updated: Aug 14, 2025

Written by Kiara Fabbri Multimedia Journalist
Fact-Checked by Sarah Frazier Content Manager

Sam Altman, founder of OpenAI, plans to support a new company competing against Elon Musk’s Neuralink.

In a rush? Here are the quick facts:

Sam Altman will co-found Neuralink rival Merge Labs.
Merge Labs seeks $850 million valuation.
Much funding expected from OpenAI’s ventures team.

The new company, Merge Labs, aims to connect human brains with computers and is seeking an $850 million valuation, according to the Financial Times (FT).

Merge Labs joins several other companies seeking to use AI breakthroughs to pursue more advanced brain-computer interfaces (BCIs), a goal Musk has long pursued with Neuralink.

Three people familiar with the plans said to the FT that Altman will co-found the company alongside Alex Blania, CEO of the eyeball-scanning digital ID project World. Although Altman will help launch Merge Labs, he will not have a day-to-day role or invest his own money.

Back in 2017, Altman speculated on his blog that humans may “merge” with machines as soon as 2025. In that same post, he predicted that “superhuman AI is going to happen, genetic enhancement is going to happen, and brain-machine interfaces are going to happen.”

The FT notes that Neuralink is currently valued at $9 billion after securing $650 million from investors such as Sequoia Capital and Thrive Capital. In 2018, Musk left OpenAI’s board over disagreements with Altman about the company’s direction.

Since then, Musk has filed multiple lawsuits against OpenAI for allegedly deviating from its non-profit purpose, while also launching his own AI company, xAI, in 2023, as noted by FT.

If Merge Labs moves forward, it could mark the next chapter in the high-stakes feud between Musk and Altman, with the battle now extending directly into the human brain. The FT reports that OpenAI declined to comment on the new project.

Kiara Fabbri

Written by: Kiara Fabbri

Hi, I’m Kiara Fabbri a Tech News Writer at WatchEverywhere. I'm a multimedia journalist with a keen interest in innovative and immersive news storytelling. Fluent in three languages—Italian, English, and Spanish—I'm deeply engaged in all facets of news reporting. I am currently undertaking a Ph.D. exploring VR applications in journalism. Following my studies in psychology (BSc) and political psychology (MSc), I embarked on a three-year journey across South America. During this time, I undertook a 4000 km solo bicycle trip from Chile to Brazil. There, I camped, cooked on the road, and volunteered in various facilities. It was during these travels that I discovered my passion for journalism. Subsequently, I pursued a Master's program in journalism innovation and enterprise. My career in journalism has seen me produce VR immersive experiences covering a range of topics. These include documenting an Anti Militaristic raid of a NATO Base, life in the Brazilian Favelas, the recent violent protest clashes in Buenos Aires and finally social projects run by Skaters in the Argentinian ghettos. In addition to my journalistic endeavours, I also practice parkour, a discipline I have cultivated over several years now. I love to make the most of this skill in my journalistic style; for example, it has enabled me to capture dynamic footage from heights during the recent violent clashes in Buenos Aires. There, I scaled heights and employed a long stick on my camera to create aerial 360° views. Through my dedication to pushing the boundaries of journalism, I am committed to amplifying voices, sparking meaningful conversations, and driving positive change in the world.

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