Sam Altman Challenges Elon Musk’s Neuralink with Merge Labs

September 2, 2025

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Why in the News?

Sam Altman, CEO of OpenAI, is co-founding a new venture named Merge Labs, aimed at developing cutting-edge brain–computer interfaces (BCIs) and offering a direct challenge to Elon Musk’s Neuralink. According to the Financial Times, the firm is already valued at around US $850 million, with plans to raise $250 million—much of which is expected to come from OpenAI’s ventures arm. Altman will not take part in day-to-day operations.

The venture will team Altman with Alex Blania, the head of Tools for Humanity (formerly World), another OpenAI–backed project focused on digital identity.

Why Merge Labs Matters

This marks a highly visible escalation in the rivalry between Altman and Musk. The two were once co-founders of OpenAI but parted ways in 2018. Since then, Altman has continued making bold moves in frontier tech even entering the realm of high-bandwidth BCIs.

Merge Labs promises a BCI that’s less invasive and faster, leveraging the latest advances in artificial intelligence to push the technology closer to mainstream use.

Meanwhile, Neuralink, founded in 2016, remains the most advanced player in the field, conducting human trials, raising significant funding, and holding a valuation of around US $9 billion.

Altman first explored the concept of merging humans with machines in a 2017 blog post titled “The Merge.” He posited that humans might soon design their own descendants, whether via direct implants or close AI partnerships.

Merge Labs remains in its early stages and has not yet entered human trials. However, the startup has already secured strong investor interest, including support from OpenAI’s ventures arm and venture capital firm Benchmark, led by Eric Vishria. The company’s mission is to develop advanced brain-computer interface (BCI) technologies that could one day allow humans to directly interact with machines, enhancing productivity, cognition, and possibly even health outcomes.

Neuralink, Musk’s competing venture founded in 2016, has a significant head start. Valued at about $9 billion, Neuralink has already conducted first-in-human trials with FDA approval. The company’s implants are designed to help patients suffering from neurological conditions, while also working toward Musk’s broader vision of human-AI symbiosis.

The rivalry between Altman and Musk adds another layer of intrigue. Once allies at OpenAI, the two have since diverged sharply on the future of artificial intelligence and human enhancement technologies. Merge Labs positions Altman directly in Musk’s lane, signaling a growing competition in the field of neurotechnology.

Experts note that while Neuralink has made rapid progress, ethical debates around brain implants remain unresolved. Privacy, safety, and long-term effects are central concerns. Merge Labs, still in its infancy, will have to balance ambitious innovation with these ethical questions if it wants to gain public trust and regulatory approval.

With Silicon Valley’s most high-profile figures now facing off, the battle to connect brains and machines is entering a new and more competitive phase.

[Credits for header image: The impressive times
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