Sam Altman Launches Merge Labs to Challenge Neuralink

OpenAI cofounder Sam Altman is set to launch a new venture named Merge Labs, designed to compete directly with Neuralink, the brain-computer interface company founded by Elon Musk. The initiative aims to develop technology that connects human brains with computers, further intensifying the rivalry between these two prominent figures in the technology sector.

Merge Labs is currently raising funds at a valuation of $850 million, with significant backing anticipated from OpenAI’s ventures team, according to three sources familiar with the plans. Although Altman will cofound the company, he is expected to take on a limited role in day-to-day operations. The project will be launched in collaboration with Alex Blania, who leads the digital ID project World, which also has Altman’s support.

Funding and Future Prospects

The new venture is looking to secure $250 million from OpenAI and other investors, though discussions are still in their early stages. Notably, Altman will not personally invest in Merge Labs, a strategic decision as he navigates the competitive landscape of brain-computer interfaces. This sector has gained momentum with the emergence of several startups, including Precision Neuroscience and Synchron, all vying to harness recent advances in artificial intelligence and electronics to create more effective brain-computer connections.

Altman has long been vocal about the potential for high-bandwidth brain-computer interfaces. In a blog post from 2017, he speculated that a significant moment, referred to in Silicon Valley as “the merge,” could occur as early as 2025. In a more recent entry, he discussed how technological advancements could soon bring these interfaces to fruition.

Rivalry with Neuralink

Merge Labs positions itself as a direct competitor to Neuralink, which raised $650 million earlier this year at a valuation of $9 billion. Neuralink has garnered support from notable investors like Sequoia Capital, Thrive Capital, and Vy Capital, marking it as a key player in the brain-computer interface space.

The relationship between Altman and Musk has been complex; both co-founded OpenAI but have diverged significantly since Musk left the board in 2018 due to disagreements. Their paths have since crossed in the competitive realms of artificial intelligence and technology, with Musk launching his own AI startup, xAI, in 2023 and challenging OpenAI’s shift from a nonprofit model.

Recent advancements in brain implant technology, which has existed for decades, now show promise for practical applications. Altman’s involvement in ventures like Merge Labs reflects a broader interest in leveraging AI developments to improve the functionality of brain-computer interfaces.

As the landscape of brain-computer interfaces evolves, the rivalry between Altman and Musk will likely continue to shape the future of this innovative field. OpenAI declined to comment on the new venture, leaving the market to speculate on its implications for the industry.