OpenAI backs Altman’s Neuralink rival with $250M investment

OpenAI is taking its ambitions beyond software. The company has led a $250 million investment in Merge Labs, a new brain-computer interface (BCI) startup co-founded by OpenAI CEO Sam Altman. Merge Labs positions itself as a competitor to Elon Musk’s Neuralink, but with a twist: it’s focusing on non-invasive, high-bandwidth ways to connect AI to the human brain.

What Merge Labs is building
Instead of surgically implanted electrodes, Merge Labs is exploring technologies like ultrasound and molecular interfaces to read and interpret neural signals. The goal isn’t just medical applications — it’s about enabling seamless human-AI interaction, potentially letting humans communicate with AI directly through thought.

How OpenAI fits in
OpenAI’s involvement goes beyond writing a check. The company plans to collaborate on building AI systems that can interpret neural signals, adapt to individual brains, and function reliably in real-world conditions. Essentially, this is about tying next-gen AI models directly to neural hardware, creating a platform where human cognition and AI reasoning can interact more naturally.

Why it matters for AI
This move highlights a shift in AI thinking: the next frontier isn’t just smarter software, it’s smarter interfaces. If Merge Labs succeeds, we could see AI moving off screens and keyboards and into direct, human-centered interaction, unlocking applications from accessibility tools to cognitive augmentation.

The rivalry angle
The investment also adds a new dimension to the unofficial race between Merge Labs and Neuralink — two very different visions of brain-AI integration, one non-invasive and collaborative, the other implant-focused and hardware-intensive.

The takeaway: OpenAI isn’t just shaping AI models anymore; it’s shaping how humans will interface with AI in the future. This could be the start of a shift from AI as a tool to AI as a thought partner.