Sam Altman Bets $850M on Brain-Computer Startup to Challenge Musk’s Neuralink Dominance

Silicon Valley's AI kingpin just placed his chips on the ultimate high-stakes table—your neurons.

Sam Altman, the OpenAI visionary, is reportedly backing a brain-computer interface (BCI) startup with a staggering $850 million war chest. The move pits him directly against Elon Musk’s Neuralink in a race to merge human cognition with machines.

The Neuro-Tech Arms Race Heats Up

While Musk’s Neuralink has hogged headlines with its primate trials and FDA tangles, Altman’s play signals a seismic shift. No more watching from the sidelines—this is a full-frontal assault on the BCI frontier.

Why Your Brain Is the New Real Estate

VCs used to throw millions at apps that delivered burritos. Now they’re betting on tech that could one day upload your consciousness—or at least let you tweet telepathically. The $850 million injection suggests Altman sees BCI as the next trillion-dollar vertical, even if most investors still think ‘synaptic interface’ is a fancy dating app.

One thing’s certain: when tech titans start treating gray matter like beachfront property, the future’s going to get weird fast.

TLDRs;

• Sam Altman is reportedly co-founding Merge Labs, targeting an $850M valuation to rival Musk’s Neuralink.
• The global brain-computer interface market could grow to $12.87B by 2034, fueling investor interest.
• Merge Labs reflects Altman’s vision for human-AI integration, contrasting with Neuralink’s medical focus.
• Altman and Musk’s long-standing rivalry now extends into the race for brain-computer dominance.

OpenAI CEO Sam Altman is reportedly co-founding a new brain-computer interface (BCI) startup called Merge Labs, aiming to challenge Elon Musk’s Neuralink in the race to connect human brains with machines.

Sources say Merge Labs is in early fundraising talks, seeking a valuation of around US$850 million, with potential backing from OpenAI’s ventures arm, though OpenAI has yet to confirm its involvement.

Altman is partnering with Alex Blania, CEO of Tools for Humanity and co-founder of Worldcoin, known for its iris-scan digital ID project. While Altman is not expected to manage day-to-day operations or invest personally, his role as co-founder adds significant credibility in the eyes of investors.

BCI sector sees rapid growth and sky-high valuations

The global BCI market is projected to expand from US$2.3 billion in 2024 to US$4.5 billion by 2029, a 14.2% annual growth rate.

Some forecasts go further, predicting the market will hit US$12.87 billion by 2034. This growth explains why early-stage startups like Merge Labs can command high valuations.

Neuralink, already the most high-profile player in the field, has raised US$650 million and reached a US$9 billion valuation, following successful demonstrations of its implant technology allowing paralyzed patients to control computers with their thoughts.

Other competitors, such as MindMaze and Neurable, are pursuing non-invasive or mixed approaches for applications ranging from rehabilitation to gaming.

Altman’s vision for merging humans and AI

The name Merge Labs reflects Altman’s long-standing interest in blending human intelligence with artificial intelligence. In a 2017 blog post, he described high-bandwidth brain interfaces as a safeguard against AI dominance.

In June 2024, he expanded on this vision in The Gentle Singularity, calling for a gradual integration of humans and AI to prevent excessive centralization of power.

This philosophical foundation puts Merge Labs in a unique position compared to Neuralink’s primarily medical focus. While Musk’s company is focused on treating conditions like paralysis, Merge Labs may target broader cognitive enhancement and human-AI symbiosis.

Rivalry reignites between Altman and Musk

The two tech titans, once allies at OpenAI, have grown increasingly competitive since Musk’s departure in 2018. Their rivalry resurfaced recently when Altman accused Musk of meddling with X’s algorithms, prompting a sharp rebuttal from Musk.

With Merge Labs, Altman appears ready to compete directly in an arena Musk has championed for years. Although details on the startup’s technical approach remain scarce, industry analysts believe the market is large enough for multiple billion-dollar players, given the wide range of applications from healthcare to consumer electronics.

If fundraising succeeds, Merge Labs will enter one of tech’s most futuristic and potentially transformative sectors, one where the line between human thought and machine action could become vanishingly thin.