OpenAI invests in Sam Altman’s brain computer interface startup Merge Labs

Just when the web of overlapping investments seemed unlikely to get tighter, OpenAI has invested in CEO Sam Altman’s brain-computer interface (BCI) startup, Merge Labs.

Merge Labs, which describes itself as a research lab focused on “bridging biological and artificial intelligence to maximize human ability,” emerged from stealth on Thursday after closing an undisclosed seed round. A source familiar with the matter confirmed earlier reports that OpenAI led the most extensive single check in Merge Labs’ $250 million seed round, valuing the company at $850 million.

“Our individual experience of the world arises from billions of active neurons,” Merge Labs said in a statement. “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 says it plans to pursue these goals through noninvasive approaches, developing new technologies that connect with neurons using molecules rather than electrodes. Merge Labs says it aims to transmit and receive information through deep-reaching methods such as ultrasound.

The investment further underscores Altman’s competitive overlap with Elon Musk, whose startup Neuralink is also developing brain-computer interface technology. Neuralink’s system requires invasive surgery, in which a robot removes a small section of skull and implants ultra-thin electrode threads into the brain. Neuralink raised a $650 million Series E round at a $9 billion valuation in June 2025.

While brain-computer interfaces have clear medical applications, Merge Labs appears focused on broader ambitions that align with long-standing Silicon Valley ideas about combining human biology with AI to enhance human capabilities.

“Brain computer interfaces (BCIs) are an important new frontier,” OpenAI said 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.”

Merge Labs’ founding team includes Alex Blania and Sandro Herbig from Tools for Humanity; Tyson Aflalo and Sumner Norman, co-founders of Forest Neurotech; and Mikhail Shapiro, a researcher at Caltech.

Blania and Herbig said in separate social media posts that they will continue their roles at Tools for Humanity. Merge Labs did not confirm whether Aflalo and Norman will remain active at Forest Neurotech, stating only that Forest will continue operating and maintain a close working relationship with Merge Labs. Shapiro plans to continue teaching at Caltech. A spokesperson said all co-founders also serve as board members of Merge Labs.

As part of the investment, OpenAI plans to collaborate with Merge Labs on scientific foundation models and other advanced tools to accelerate research. OpenAI said AI can help speed progress in bioengineering, neuroscience, and device development. In contrast, AI operating systems could help interpret user intent and function effectively despite limited or noisy neural signals.

In effect, Merge Labs’ technology could become a new interface layer for OpenAI’s software, underscoring the circular nature of the deal. Success at Merge Labs could drive greater adoption of OpenAI’s products, reinforcing the value of OpenAI’s investment in a company founded by its own CEO.

OpenAI is also collaborating with Jony Ive’s startup io, which OpenAI acquired last year, on a screenless AI hardware product. Unconfirmed reports suggest the device could take the form of an earbud.

The company primarily invests through the OpenAI Startup Fund, which has backed several startups linked to Altman, including Red Queen Bio, Rain AI, and Harvey. OpenAI has also entered into commercial agreements with Altman-affiliated companies, including Helion Energy and Oklo.

Altman has discussed the concept of a “merge” between humans and machines for years. In a 2017 blog post, he speculated that such a merge could occur between 2025 and 2075 and take many forms, from direct neural interfaces to close collaboration with AI systems. He has described the merge as a potential best-case scenario for humanity’s future alongside superintelligent AI.

“Although the merge has already begun, it’s going to get a lot weirder,” Altman wrote at the time. “We will be the first species ever to design our own descendants.”

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