In a response to Elon Musk’s Neuralink specialising in Brain Computer Interface (BCI), OpenAI has made a strategic investment in Merge Labs – a San Francisco-based BCI startup co-founded by former Neuralink engineers and backed by Sam Altman. The funding round positions Merge Labs as a serious contender in the rapidly growing BCI space, directly challenging Elon Musk’s Neuralink and ramping up the competition in the BCI space.
Merge Labs, founded in late 2024, is developing minimally invasive, high-bandwidth brain implants aimed at restoring motor function for patients with paralysis, enabling thought-controlled computing, and eventually offering cognitive enhancements for healthy users. The company claims its approach combines the precision of Neuralink’s threads with less invasive surgical methods, potentially reducing risks and recovery time compared to fully implanted electrodes.
OpenAI invests in Merge Labs
According to sources familiar with the matter, OpenAI participated in Merge Labs’ $25 million seed round alongside other prominent investors, including Founders Fund, Khosla Ventures, and several high-profile angels from the AI and neurotech communities. The exact amount of OpenAI’s contribution has not been disclosed.
Sam Altman, who is personally backing Merge Labs as an investor and advisor, stated, “Brain-computer interfaces represent one of the most transformative technologies of our time. Merge Labs is taking a thoughtful, safety-first approach to building devices that could dramatically improve quality of life while opening new frontiers for human-AI collaboration.”
Merge Labs CEO Dr. Elena Vasquez (a former Neuralink principal engineer) highlighted, “We’re building for both restoration and augmentation. Our goal is safe, scalable BCI that empowers people — whether recovering from injury or seeking to expand their cognitive capabilities.”
How Merge Labs differs from Neuralink
Merge Labs differentiates itself from Neuralink’s implementation through:
– A hybrid electrode array that combines flexible polymer threads with a less invasive insertion method.
– Advanced on-device signal processing to reduce power consumption and heat generation.
– Strong focus on biocompatibility and long-term stability, addressing common concerns with current BCI implants.
– Integration of AI-driven neural decoding algorithms to improve accuracy and adaptability over time.
The startup has already completed preclinical testing in animal models and is preparing for first-in-human trials in late 2026 or early 2027, pending regulatory approval from the FDA.
Is OpenAI going against Musk’s Neuralink?
OpenAI’s investment highlights the intensifying race in neurotechnology, where Neuralink (led by Elon Musk) currently leads with multiple human implant trials underway. Other players in the BCI segment like Synchron, Blackrock Neurotech, and Precision Neuroscience are also advancing minimally invasive BCI solutions.
OpenAI’s involvement signals growing convergence between generative AI and brain-computer interfaces — a space Altman has frequently described as critical for achieving human-level or superhuman intelligence in symbiosis with machines.
