TL;DR
OpenAI participated as the largest single investor in Merge Labs’ $250 million seed round, valuing the brain-computer interface startup at $850 million. Merge Labs, led by Sam Altman and several co-founders, says it will pursue non-invasive BCI approaches that use molecules and deep-reaching modalities like ultrasound, and will work with OpenAI on scientific models and related tools.
What happened
Merge Labs, a research-focused startup founded by Sam Altman and several collaborators, emerged from stealth announcing an undisclosed seed round that sources say totals $250 million. OpenAI wrote the largest single check in that round, giving Merge Labs an $850 million valuation. The company describes its goal as bridging biological and artificial intelligence and plans to pursue non-invasive brain-computer interfaces that rely on molecules rather than electrodes and use modalities such as ultrasound to reach deep neural tissue. As part of the arrangement, OpenAI will collaborate with Merge Labs on scientific foundation models and other advanced tools intended to accelerate research and device development, including AI systems that interpret neural signals. The deal further connects Altman’s AI organization with a startup he helped start, and positions Merge Labs alongside competitors such as Elon Musk’s Neuralink, which uses invasive implants.
Why it matters
- Ties between a leading AI developer and a nascent BCI company could accelerate integration of neural interfaces with AI systems.
- Merge Labs’ non-invasive technical claims, if validated, would represent a different approach from implant-based BCIs and could broaden potential user applications.
- The investment underscores growing commercial interest in human–AI interaction technologies and the strategic importance of hardware–software stacks.
- The arrangement raises questions about overlapping roles and incentives when leaders of large AI firms back companies that could drive demand for their platforms.
Key facts
- Merge Labs announced coming out of stealth and raised a $250 million seed round, according to sources.
- OpenAI was the largest single investor in that seed round; Merge Labs’ post-money valuation is reported at $850 million.
- Merge Labs leaders include Sam Altman and co-founders Alex Blania, Sandro Herbig, Tyson Aflalo, Sumner Norman, and Caltech researcher Mikhail Shapiro.
- The startup says it aims for non-invasive BCIs that use molecules instead of electrodes and employ deep-reaching modalities such as ultrasound.
- OpenAI will work with Merge Labs on scientific foundation models and other frontier tools to speed research and device engineering.
- The move positions Merge Labs in competition with implant-focused companies like Neuralink, which uses invasive electrode implants and last raised a $650 million Series E at a $9 billion valuation in June 2025.
- OpenAI primarily invests through its OpenAI Startup Fund and has backed other companies tied to or connected with Altman.
- OpenAI is also collaborating with Jony Ive’s startup io on a screenless AI hardware product; recent leaks suggesting the device might be an earbud were described as unconfirmed.
What to watch next
- Technical validation of Merge Labs’ claims about non-invasive molecule-based interfaces and ultrasound modalities.
- Announcements or demonstrations showing how OpenAI's models and Merge Labs’ interfaces will operate together in practice.
- Regulatory, ethical, and governance responses to investments and collaborations that link major AI platforms with neural-interface hardware.
Quick glossary
- Brain-computer interface (BCI): A technology that enables direct communication between the brain and an external device by detecting, interpreting, or modulating neural activity.
- Seed round: An early stage of startup fundraising used to finance initial operations, product development, and go-to-market activities.
- Valuation: An estimate of a company’s total worth, typically used to determine ownership stakes during investments.
- Foundation model: A large AI model trained on broad data that can be adapted to many downstream tasks through fine-tuning or prompting.
- Non-invasive: A medical or technical approach that does not require surgical entry into the body or implantation of devices.
Reader FAQ
How much did Merge Labs raise and what was the valuation?
According to sources, Merge Labs’ seed round totaled $250 million and the company was valued at $850 million.
Did OpenAI lead the round?
OpenAI participated and provided the largest single check in the seed round, per sources; specific leadership status was not detailed.
Is Merge Labs pursuing invasive implants like Neuralink?
Merge Labs says it intends to pursue non-invasive approaches using molecules and modalities such as ultrasound rather than electrode implants.
Will Merge Labs’ products be integrated with OpenAI services?
OpenAI and Merge Labs will collaborate on scientific foundation models and tools; precise product integration plans and timelines were not provided in the source.
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