OpenAI backs Sam Altman’s Merge Labs brain-computer interface venture

In a move that deepens the intersection of AI and human biology, OpenAI has invested in Merge Labs, a brain-computer interface startup founded by CEO Sam Altman.

Emerging from stealth on Thursday, Merge Labs announced an undisclosed seed round. Sources confirm that OpenAI provided the largest single investment in a $250 million funding round, valuing the company at $850 million.

“Our individual experience of the world arises from billions of active neurons,” Merge Labs stated. “If we can interface with these neurons at scale, we could restore lost abilities, support healthier brain states, deepen our connection with each other, and expand what we can imagine and create alongside advanced AI.”

The company aims to achieve these goals noninvasively by developing technologies that connect with neurons using molecules rather than electrodes, utilizing deep-reaching modalities like ultrasound to transmit and receive information.

This development intensifies the rivalry between Altman and Elon Musk, whose Neuralink is also working on brain-computer interfaces. While Neuralink currently relies on invasive surgery involving robotic insertion of electrode threads, Merge Labs is pursuing a noninvasive approach. Neuralink recently raised $650 million in Series E funding at a $9 billion valuation in June 2025.

While BCIs hold clear medical potential, Merge Labs appears focused on a Silicon Valley vision of merging human biology with AI to unlock superhuman capabilities.

“Brain computer interfaces (BCIs) are an important new frontier,” OpenAI explained in a blog post. “They open new ways to communicate, learn, and interact with technology. BCIs will create a natural, human-centered way for anyone to seamlessly interact with AI. This is why OpenAI is participating in Merge Labs’ seed round.”

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Alongside Altman, Merge Labs’ co-founders include Alex Blania (CEO) and Sandro Herbig (product and engineering lead) from Tools for Humanity, another Altman-backed company known for its eye-scanning World orbs. The team also features Tyson Aflalo and Sumner Norman, co-founders of implantable neural tech firm Forest Neurotech, and Caltech researcher Mikhail Shapiro.

Blania and Herbig indicated via social media that they will retain their roles at Tools for Humanity. Merge Labs did not confirm whether Aflalo and Norman will stay at Forest Neurotech, stating only that the company will continue operations and maintain a “wonderful working relationship” with Merge. Shapiro plans to continue his teaching duties at Caltech.

A spokesperson confirmed to TechCrunch that the co-founders also serve on Merge Labs’ board.

Under the agreement, OpenAI will collaborate with Merge Labs on scientific foundation models and other frontier tools to “accelerate progress.” OpenAI noted that AI will not only expedite R&D in bioengineering, neuroscience, and device engineering, but that the interfaces will benefit from AI operating systems capable of interpreting intent, adapting to individuals, and functioning reliably with limited or noisy signals.

Essentially, Merge Labs could serve as a remote control for OpenAI’s software. This creates a circular dynamic: if Merge Labs succeeds, it could drive more users to OpenAI, justifying the initial investment. It also enhances the value of a startup owned by Altman using resources from the company he leads.

OpenAI is also collaborating with Jony Ive’s startup io, acquired last year, to develop AI hardware that operates without a screen. Unconfirmed leaks suggest the device may be an earbud.

OpenAI primarily invests through the OpenAI Startup Fund, which has backed several other startups linked to Altman, including Red Queen Bio, Rain AI, and Harvey. The company has also entered commercial agreements with startups where Altman personally holds ownership or chairmanship, such as nuclear fusion startup Helion Energy and nuclear fission company Oklo.

Altman has envisioned the “merge” — the fusion of humans and machines — since at least 2017, when he published a blog post predicting it would occur between 2025 and 2075. He speculated that this merge could take various forms, from plugging electrons into our brains to becoming “really close friends with a chatbot.”

He described the merge as humanity’s “best-case scenario” for surviving superintelligence AI, which he views as a separate species potentially in conflict with humans.

“Although the merge has already begun, it’s going to get a lot weirder,” Altman wrote. “We will be the first species ever to design our own descendants. My guess is that we can either be the biological bootloader for digital intelligence and then fade into an evolutionary tree branch, or we can figure out what a successful merge looks like.”

TechCrunch has contacted OpenAI and Merge Labs for further comment.

This article has been updated to confirm that Merge Labs’ founders will continue their work at their respective companies.