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

Just when you thought circular deals couldn’t get any more circular, OpenAI invested in CEO Sam Altman’s brain-computer interface (BCI) startup Merge Labs.

Merge Labs, which describes itself as a “research lab” dedicated to “connecting biological and artificial intelligence to maximize human potential,” emerged from stealth on Thursday with an undisclosed seed round. A source familiar with the matter confirmed earlier reports that OpenAI wrote the largest single check in Merge Labs’ $250 million seed round at a valuation of $850 million.

“Our individual experience of the world arises from billions of active neurons,” a statement from Merge Labs said. “If we can interact with these neurons on a large scale, we can restore lost capabilities, support healthier brain states, deepen our connections with each other, and expand what we can imagine and create alongside advanced artificial intelligence.”

Merge Labs said it intends to reach these breakthroughs non-invasively by developing “entirely new technologies that communicate with neurons using molecules instead of electrodes” to “transmit and receive information using deep-range methods such as ultrasound.”

The move deepens Altman’s rivalry with Elon Musk, whose startup Neuralink is also developing computer interface chips that allow people with severe paralysis to control devices with their thoughts. Neuralink currently requires an invasive surgical procedure for the implant, in which a surgical robot removes a small piece of the skull and inserts very fine polar threads into the brain to read nerve signals. The company last raised a $650 million Series E at a $9 billion valuation in June 2025.

While there are undoubtedly medical use cases for BCIs, Merge Labs seems more focused on using the technology to fulfill a Silicon Valley fantasy of combining human biology with artificial intelligence to give us superhuman abilities.

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

Aside from Altman, other co-founders include Alex Plania (CEO) and Sandro Herbig (production and engineering lead) at Tools for Humanity, another Altman-backed company (and creator of Universal Eye Scanning Orbs); Tyson Afflalo and Sumner Norman, co-founders of implantable neurotechnology company Forest Neurotech; and Michael Shapiro, a researcher at the California Institute of Technology.

Plania and Herbig said in separate social media posts that they will continue their roles at Tools for Humanity. Merge Labs would not confirm whether Alfalo and Norman would retain their positions at Forest Neurotech, saying only that the company would continue to operate and have a “great working relationship” with Merge. Shapiro intends to continue teaching at Caltech.

A TechCrunch spokesperson said the co-founders are also on Merge Labs’ board of directors.

As part of the deal, OpenAI will work with Merge Labs on scientific basis models and other pioneering tools to “accelerate progress.” In its blog, OpenAI noted that not only will AI help accelerate R&D in bioengineering, neuroscience, and device engineering, but interfaces will also benefit from AI operating systems that “can interpret intentions, adapt to individuals, and operate reliably with limited, noisy signals.”

In other words, Merge Labs can act as a remote control for OpenAI. This leads to the circular nature of the deal: if Merge Labs succeeds, it could drive more users to OpenAI, justifying OpenAI’s investment in the company. He also increases the value of Altman’s startup by using resources from a company he runs.

OpenAI is also working with startup Jony Ive, which it acquired last year, to produce a piece of non-screen-based AI hardware. Recent unconfirmed leaks suggest that the device could be an earphone.

OpenAI invests primarily through the OpenAI Startup Fund, which has invested in several other startups associated with Altman, including Red Queen Bio, Rain AI, and Harvey. OpenAI has also entered into commercial agreements with startups that Altman personally owns or heads, including nuclear fusion startup Helion Energy and nuclear fission company Oklo.

Altman has been dreaming about “fusion” — the idea of ​​humans and machines merging — since at least 2017 when he published a blog post in which he guessed it would happen somewhere between 2025 and 2075. He also speculated that fusion could take many forms, including connecting electrons to our brains or becoming “really close friends with a chatbot.”

He said the merger is “our best scenario” for humanity to survive against artificial superintelligence, which he described as a separate species in conflict with humans.

“Although the consolidation process has already begun, it is only going to get weirder,” Altman wrote. “We will be the first species ever to engineer our own descendants. I believe we can either be the biological bearer of digital intelligence and then fade into the branch of an evolutionary tree, or we can figure out what successful integration looks like.”

TechCrunch has reached out to OpenAI and Merge Labs for more information.

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