Sam Altman And OpenAI Target $250M For Neuralink Rival Merge Labs, Escalating Billionaire Feud With Elon Musk Over Brain Implants

Global
Source: Benzinga.comPublished: 08/18/2025, 17:14:00 EDT
Sam Altman
Elon Musk
OpenAI
Neuralink
Merge Labs
Brain-Computer Interface
Artificial Intelligence
Sam Altman And OpenAI Target $250M For Neuralink Rival Merge Labs, Escalating Billionaire Feud With Elon Musk Over Brain Implants

News Summary

Sam Altman, OpenAI co-founder, is co-founding a new venture called Merge Labs with Worldcoin CEO Alex Blania, aiming to challenge Elon Musk in the brain-computer interface (BCI) market. The Financial Times reports Merge Labs is seeking $250 million in funding from OpenAI's venture arm and other investors, with the company already valued at $850 million. Altman will serve as a co-founder but will not hold a daily operational role. Merge Labs is named after

Background

Sam Altman is the co-founder of OpenAI, valued at $300 billion, a company at the forefront of artificial intelligence. Altman has previously invested in nuclear power startup Oklo, nuclear fusion venture Helion, and the iris-scanning digital ID project Worldcoin. Elon Musk, CEO of Tesla, SpaceX, and Neuralink, became a direct competitor to Altman in AI (founding xAI in 2023) and brain-computer interface (BCI) technology after leaving OpenAI's board in 2018 due to strategic disagreements. Their rivalry has become public, involving legal disputes and accusations on social media. The BCI market is a high-stakes sector aiming to directly connect human brains to computers, with Musk's Neuralink currently leading. Neuralink recently secured $650 million in Series E funding at a $9 billion valuation and is conducting human clinical trials to help individuals with mobility impairments control devices with their thoughts.

In-Depth AI Insights

What are the deeper strategic implications of Sam Altman's entry into the Brain-Computer Interface (BCI) market, beyond just competition with Elon Musk? - Altman's move is not merely an extension of his personal rivalry with Musk but a critical step towards accelerating his vision of Artificial General Intelligence (AGI). High-bandwidth BCI could be seen as a potential pathway for AGI to merge with human consciousness, realizing his 2017 theoretical concept of human-machine fusion. - Investing in BCI could provide new hardware interfaces and data streams for OpenAI's future products and services. Even with Altman not involved in daily operations, this strategic positioning ensures OpenAI's presence in a potential next-generation computing platform. - This also reflects Altman's investment philosophy in