Sam Altman reportedly working on Neuralink rival Merge Labs

Sam Altman is said to be co-founding a new brain–computer interface startup that could put him in direct competition with Elon Musk’s Neuralink.

According to the Financial Times, the project, named Merge Labs, is in early fundraising talks, with a potential valuation of around $850 million. Unnamed sources claim a large portion of the capital could come from OpenAI’s own ventures arm.

The name "Merge" refers to a term Altman used back in 2017 to describe the hypothetical moment when human brains and computers effectively become one. Merge Labs will reportedly be co-founded with Alex Blania, head of Tools for Humanity — Altman’s eye-scanning digital ID project (formerly known as World), which promises to "verify humanness" through iris biometrics.

Sources told TechCrunch that discussions are still at an early stage, and OpenAI has yet to make a final decision on whether to participate, meaning funding details could change. Altman himself is not expected to invest personal capital in the venture.

If launched, Merge Labs would directly compete with Neuralink, Musk’s company developing brain-implant chips. The move could further fuel the long-running rivalry between Altman and Musk, which began when Musk left OpenAI’s board in 2018 and has since spilled over into public disputes about AI development and corporate direction.

OpenAI has so far declined to comment on the reports, and Merge Labs has yet to be officially announced.