OpenAI has invested in Merge Labs, a brain-computer interface startup founded by OpenAI Chief Executive Officer Sam Altman, as part of a $250 million seed funding round that values the company at about $850 million, according to a source familiar with the matter. OpenAI wrote the largest single check in the round, which was disclosed as Merge Labs emerged from stealth.
Merge Labs describes itself as a research-focused company working on technologies designed to connect biological and artificial intelligence. The startup said its goal is to develop non-invasive brain-computer interfaces that can transmit and receive neural signals without the use of implanted electrodes. Instead, the company plans to rely on molecular-level interactions and modalities such as ultrasound to reach neurons deep within the brain.
In a statement, Merge Labs said its research is based on the idea that human cognition arises from billions of active neurons, and that large-scale interfaces with those neurons could enable new ways to restore lost abilities, support healthier brain states, and expand how people interact with advanced AI systems.
Technology and Competitive Landscape
The investment places OpenAI closer to the emerging brain-computer interface sector, an area that has attracted significant funding and attention in recent years. Elon Musk’s Neuralink is the most visible competitor, developing implantable brain chips that allow people with paralysis to control digital devices. Neuralink’s technology requires invasive surgery and uses fine electrode threads inserted directly into brain tissue. The company raised a $650 million Series E round in June 2025 at a valuation of about $9 billion.
Merge Labs is pursuing a different technical approach by focusing on non-invasive interfaces, which could lower medical risks and broaden potential applications. While brain-computer interfaces are often framed around clinical uses such as treating neurological disorders, Merge Labs has positioned its work around broader human-AI interaction.
OpenAI said in a blog post that brain-computer interfaces represent an important frontier for communication and learning. The company added that its AI systems could help accelerate research in neuroscience, bioengineering, and device development, while future interfaces could rely on AI to interpret user intent and operate effectively despite limited or noisy neural signals.
Founders and Strategic Ties
Merge Labs was co-founded by Altman alongside Alex Blania and Sandro Herbig, who lead Tools for Humanity, another Altman-backed company. Additional co-founders include Tyson Aflalo and Sumner Norman of neural technology company Forest Neurotech, and Mikhail Shapiro, a researcher at the California Institute of Technology. The company said the co-founders also serve as board members.
OpenAI’s participation continues a pattern of investments made through the OpenAI Startup Fund in companies connected to Altman, including firms in artificial intelligence, biotechnology, and energy. Separately, OpenAI has been expanding its hardware ambitions, including work with Jony Ive’s startup io on AI-focused consumer devices.
