The already intense competition between tech billionaires Sam Altman and Elon Musk is entering a new frontier: brain-computer interfaces (BCIs). Altman, CEO of OpenAI, is co-founding a brain-implant startup called Merge Labs, positioning it as a direct challenger to Musk’s established company, Neuralink, according to multiple reports from the Financial Times and other outlets.
Merge Labs aims to raise $250 million at an $850 million valuation, with most funding expected to come from OpenAI’s venture arm. Altman is collaborating with Alex Blania, CEO of Tools for Humanity (known for its Worldcoin iris-scanning project). Though Altman will serve as a co-founder, he reportedly won’t invest personal capital or manage daily operations.
The Rivalry Intensifies
This venture escalates a years-long feud between Altman and Musk, who co-founded OpenAI in 2015. Musk left the board in 2018, and their relationship has since deteriorated into public clashes. Just this week, the two traded accusations on Musk’s social platform X (formerly Twitter), with Altman accusing Musk of platform manipulation and Musk labeling Altman a liar.
Merge Labs enters a field Musk has dominated since founding Neuralink in 2016. Neuralink is already conducting human trials, helping patients with severe paralysis control devices via thought. Recently, it secured a $600 million Series E round at a $9 billion valuation.
Beyond Business: Philosophical Visions
Both founders frame BCI technology through the lens of “the singularity,” a future where humans and machines merge. Musk defines this as AI surpassing human intelligence, while Altman’s 2017 essay “The Merge” envisioned humans designing their descendants through integration with technology.
“Although the merge has already begun, it’s going to get a lot weirder,” Altman wrote, suggesting electrodes or AI companionship as pathways. His new startup’s name directly reflects this philosophy.
A Crowded and Complex Field
While the Altman-Musk rivalry captivates attention, the BCI landscape extends far beyond them. Established players include:
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Precision Neuroscience, founded by a Neuralink co-founder, recently received FDA clearance for its minimally invasive electrode film.
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Blackrock Neurotech, implanting devices since 2008.
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Synchron and Paradromics, advancing less invasive approaches.
Neuralink itself faces scrutiny over safety protocols, even as it aims for 20,000 annual implants by 2031.
Ethical and Technical Hurdles
Neurotech analysts urge caution amid the hype. Dr. Elena Rodriguez, a bioethicist at Stanford University (not affiliated with either company), notes: “BCIs promise life-changing mobility and communication tools for paralysis patients. But leaping toward consumer ‘brain enhancement’ requires grappling with massive ethical questions of privacy, identity, and inequality.”
Technical challenges also persist. Most BCIs, including Neuralink’s, require invasive brain surgery, raising infection risks. Wireless bandwidth limitations further constrain data transfer between neurons and devices.
What’s Next for Merge Labs?
Details remain sparse, as OpenAI declined to comment. Funding talks are reportedly in early stages, and terms could shift. However, Altman’s collaboration with Blania suggests a focus on secure human-machine integration, possibly leveraging Tools for Humanity’s biometric verification expertise.
For patients like Neuralink trial participant Bradford Smith, who regained digital communication abilities after losing speech to ALS, the rivalry could accelerate life-changing innovation. For Silicon Valley, it’s a high-stakes duel over the future of human evolution.
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