Just when you thought the circular deals couldn’t get any more circular, OpenAI has invested in CEO Sam Altman’s brain computer interface startup Merge Labs.
Merge Labs, which defines itself as a “research lab” dedicated to “bridging biological and artificial intelligence to maximize human ability,” came out of stealth on Thursday with an undisclosed seed round. A source familiar with the matter confirmed previous reports that OpenAI wrote the largest single check in Merge Labs’s $250 million seed round at a $850 million valuation.
“Our individual experience of the world arises from billions of active neurons,” reads a statement from Merge Labs. “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.”
Merge Labs said it intends to reach these feats non-invasively by developing “entirely new technologies that connect with neurons using molecules instead of electrodes” to “transit and receive information using deep-reaching modalities like ultrasound.”
The move deepens Altman’s competition with Elon Musk, whose own startup Neuralink is also developing computer interface chips that allow people who suffer from severe paralysis to control devices with their thoughts. Neuralink currently requires invasive surgery for implantation, where a surgical robot removes a small piece of skull and inserts ultra-fine electrode threads into the brain to read neural signals. The company last raised a $650 million Series E at a $9 billion validation 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 AI to give us superhuman capabilities.
“Brain computer interfaces (BCIs) are an important new frontier,” OpenAI wrote 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.”
Techcrunch event Join the Disrupt 2026 Waitlist Add yourself to the Disrupt 2026 waitlist to be first in line when Early Bird tickets drop. Past Disrupts have brought Google Cloud, Netflix, Microsoft, Box, Phia, a16z, ElevenLabs, Wayve, Hugging Face, Elad Gil, and Vinod Khosla to the stages — part of 250+ industry leaders driving 200+ sessions built to fuel your growth and sharpen your edge. Plus, meet the hundreds of startups innovating across every sector. Join the Disrupt 2026 Waitlist Add yourself to the Disrupt 2026 waitlist to be first in line when Early Bird tickets drop. Past Disrupts have brought Google Cloud, Netflix, Microsoft, Box, Phia, a16z, ElevenLabs, Wayve, Hugging Face, Elad Gil, and Vinod Khosla to the stages — part of 250+ industry leaders driving 200+ sessions built to fuel your growth and sharpen your edge. Plus, meet the hundreds of startups innovating across every sector. San Francisco | WAITLIST NOW
Aside from Altman, other co-founders include Alex Blania and Sandro Herbig, respectively CEO and product and engineering lead at Tools for Humanity, another Altman-backed company (and creator of the eye-scanning World orbs); Tyson Aflalo and Sumner Norman, co-founders of implantable neural tech company Forest Neurotech; and Mikhail Shapiro, a researcher at Caltech.
Blania and Herbig said in separate social media posts that they would continue their roles at Tools for Humanity. Merge Labs did not confirm whether Alfalo and Norman would maintain their positions at Forest Neurotech, only saying that the company would continue operating and will have a “wonderful working relationship” with Merge. Shapiro intends to continue teaching at Caltech.
... continue reading