Sam Altman’s $850M Merge Labs to Take on Elon Musk’s Neuralink in Brain-Tech Race

Sam Altman, the chief executive of OpenAI, is preparing to enter one of the most cutting-edge arenas in technology — brain-computer interfaces — with a bold new venture called Merge Labs. According to a report from the Financial Times, the startup could be valued at an impressive $850 million and is set to become a direct competitor to Elon Musk’s Neuralink, marking another chapter in the ongoing rivalry between the two tech heavyweights.

Merge Labs is still in its formative stages, but insiders suggest that funding may largely come from OpenAI’s ventures arm. While no agreements have been finalized, the discussions indicate strong interest in positioning the company as a leader in human-machine integration. Altman is reportedly partnering with Alex Blania, head of Tools for Humanity, the company behind the biometric ID project “World” and its well-known eye-scanning verification orbs currently being deployed in the US and UK.

With Merge Labs, Altman is stepping directly into the field Musk’s Neuralink has been pioneering since 2016. Neuralink is developing implantable chips that allow people — especially those with severe paralysis — to control devices through thought alone. The company recently entered human trials and earlier this year raised $600 million, pushing its valuation to $9 billion.

The potential impact of such technology is staggering, with many experts believing it could accelerate progress toward “the singularity” — the theoretical point at which human and machine intelligence merge. Altman has been vocal about this possibility for years. In a 2017 blog post, he wrote:

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

At that time, Altman was still working alongside Musk at OpenAI. Musk later departed in 2018, and relations between the two have since soured. Their latest public spat erupted earlier this week when Musk accused Apple of giving OpenAI preferential treatment in App Store rankings and threatened legal action. Altman shot back, alleging Musk manipulates his social media platform, X, to promote his own interests and disadvantage rivals. The argument quickly descended into personal attacks, with both using AI chatbots to take playful — and sometimes pointed — jabs at one another.

This feud is not new. Musk is currently suing Altman, OpenAI president Greg Brockman, and Microsoft, claiming they deviated from OpenAI’s original non-profit mission in pursuit of commercial gains. The case is scheduled for trial in March 2026.

Despite their differences, both are pushing forward with ambitious, AI-driven ventures. Musk is advancing Neuralink and his AI company xAI, while Altman appears determined to challenge him head-on in the brain-computer space. If Merge Labs gains momentum, the race between these two visionaries could redefine not only human-computer interaction but the future of intelligence itself.