OpenAI has made a significant investment in Merge Labs, a brain-computer interface (BCI) startup founded by its CEO, Sam Altman, adding another layer to the increasingly interconnected landscape of tech investments.
Merge Labs, describing itself as a “research lab” focused on “connecting biological and artificial intelligence to enhance human potential,” officially launched on Thursday, announcing an undisclosed seed funding round. An insider confirmed earlier reports that OpenAI was the primary investor, contributing the largest portion of Merge Labs’ $250 million seed round, which valued the company at $850 million.
According to a statement from Merge Labs, “Our unique perception of the world stems from billions of active neurons.” The company believes that “by interfacing with these neurons extensively, we could potentially recover lost functions, promote healthier brain activity, strengthen interpersonal connections, and broaden our capacity for imagination and creation in conjunction with advanced AI.”
Merge Labs stated its aim to achieve these ambitious goals without invasive procedures. This will involve creating “novel technologies that interface with neurons through molecules rather than electrodes,” enabling the “transmission and reception of information via penetrating methods such as ultrasound.”
This development intensifies Altman’s rivalry with Elon Musk, as Musk’s company, Neuralink, is also developing brain-computer interface chips to enable individuals with severe paralysis to operate devices using their thoughts. Currently, Neuralink’s procedure involves invasive surgery where a robot removes a skull section to implant ultra-fine electrode threads into the brain to detect neural signals. In June 2025, Neuralink secured $650 million in Series E funding, valuing the company at $9 billion.
Although brain-computer interfaces (BCIs) clearly have medical applications, Merge Labs appears more inclined towards leveraging this technology to realize a common Silicon Valley vision: merging human biology with AI to bestow superhuman abilities.
In a recent blog post, OpenAI stated, “Brain-computer interfaces (BCIs) represent a crucial emerging field.” They continued, “These technologies unlock novel methods for communication, learning, and interacting with technology. BCIs will establish an intuitive, human-centric approach for effortless interaction with AI, which is our motivation for investing in Merge Labs’ seed round.”
In addition to Altman, the co-founding team comprises Alex Blania (CEO) and Sandro Herbig (product and engineering lead) from Tools for Humanity—another company supported by Altman, known for developing the eye-scanning World orbs. Also involved are Tyson Aflalo and Sumner Norman, co-founders of Forest Neurotech, an implantable neural technology firm, and Mikhail Shapiro, a Caltech researcher.
In distinct social media announcements, Blania and Herbig confirmed their intention to retain their current positions at Tools for Humanity. Merge Labs did not specify if Alfalo and Norman would remain with Forest Neurotech, only indicating that Forest Neurotech would continue its operations and maintain a “positive collaborative relationship” with Merge. Shapiro plans to continue his teaching duties at Caltech.
A representative informed TechCrunch that Merge Labs’ co-founders additionally serve on the company’s board of directors.
The agreement stipulates that OpenAI will collaborate with Merge Labs on scientific foundation models and advanced tools to “expedite development.” OpenAI’s blog post highlighted that AI will not only boost R&D across bioengineering, neuroscience, and device engineering but also that these interfaces will gain from AI operating systems capable of “interpreting user intent, personalizing experiences, and functioning dependably despite weak or inconsistent signals.”
Essentially, Merge Labs could serve as an intuitive control mechanism for OpenAI’s software. This underpins the self-reinforcing aspect of the investment: Merge Labs’ success could attract more users to OpenAI, thereby validating OpenAI’s financial commitment. Furthermore, it enhances the valuation of a startup controlled by Altman, funded by resources from an organization he manages.
OpenAI is also collaborating with Jony Ive’s startup io, which it acquired last year, to develop a screen-free AI hardware device. Recent unverified reports indicate this device could be an earbud.
OpenAI’s primary investment vehicle is the OpenAI Startup Fund, which has supported numerous other Altman-related startups such as Red Queen Bio, Rain AI, and Harvey. Additionally, OpenAI has established commercial partnerships with companies Altman personally owns or chairs, including the nuclear fusion startup Helion Energy and the nuclear fission company Oklo.
Altman has long envisioned the “merge”—the concept of humans and machines integrating—dating back to at least 2017, when he published a blog post estimating its realization between 2025 and 2075. He also hypothesized that this merge could manifest in various ways, from directly connecting electrons to our brains to forming deep connections with chatbots.
He articulated that such a merge represents humanity’s “optimal outcome” for survival against superintelligent AI, which he characterized as a distinct species potentially at odds with humans.
Altman wrote, “While the merge has already commenced, it is poised to become significantly stranger.” He added, “We will be the first species to ever engineer our own progeny. My hypothesis is that we can either serve as the biological foundation for digital intelligence before receding into an evolutionary dead end, or we can discern the blueprint for a prosperous merge.”
TechCrunch has sought additional details from both OpenAI and Merge Labs.
This article has been updated to confirm that the founders of Merge Labs will maintain their roles at their current organizations.