Altman's Merge Labs, backed by OpenAI, challenges Musk's Neuralink

Sam Altman, the prominent figure behind OpenAI, is reportedly in the process of co-founding a new brain-to-computer interface (BCI) startup named Merge Labs. Sources familiar with the discussions, as told to the Financial Times, indicate that the venture could receive substantial funding, potentially largely from OpenAI’s dedicated ventures team. While the startup is anticipated to command an impressive valuation of $850 million, internal sources suggest that discussions are still in their nascent stages, and OpenAI has yet to formally commit, meaning the specific terms of the deal could still evolve.

Merge Labs is also said to be collaborating with Alex Blania, who oversees Tools for Humanity, the entity formerly known as Worldcoin. This connection links Altman’s new BCI endeavor to his existing eye-scanning digital ID project, which aims to provide a verifiable method for individuals to assert their humanness in the digital realm.

This emerging venture positions Merge Labs as a direct challenger to Elon Musk’s Neuralink, a company that has been at the forefront of developing implantable brain-computer interface chips. Musk founded Neuralink in 2016, though its existence remained under wraps until the following year. Since then, Neuralink has made significant strides, most notably by initiating human trials with individuals suffering from severe paralysis. The ambitious goal of these trials is to empower patients to control external devices purely through their thoughts. Neuralink’s progress was underscored by a substantial $600 million Series E funding round in June, which valued the company at $9 billion.

The work undertaken by Neuralink, and potentially by Merge Labs, carries profound implications for the future of human-technology interaction. Many within the tech community believe such advancements could propel humanity towards “the singularity,” a concept steeped in both science fiction and technological foresight. While Musk has often used the term to describe a future point where artificial intelligence surpasses human intelligence, its more classic definition, popularized by Dino Buzzati’s 1960s novella, refers to the merging of technology with human biology.

Altman himself explored this transformative concept in a 2017 blog post titled “The Merge.” At the time, he mused, “Although the merge has already begun, it’s going to get a lot weirder. We will be the first species ever to design our own descendants.” His reflections were informed by research he encountered at OpenAI, where Musk was still a co-founder.

However, the collaborative spirit between Altman and Musk has long since dissipated. Musk departed OpenAI in 2018, and their relationship has steadily deteriorated, marked by increasingly public disagreements. Just recently, the two tech titans engaged in a heated exchange on X, with Altman accusing Musk of manipulating the platform and Musk retorting by labeling Altman a liar.

While the formal announcement of Merge Labs remains pending, the timing and nature of Altman’s reported venture suggest a clear intent to compete directly with Musk in the high-stakes arena of brain-computer interfaces and the broader pursuit of the singularity. It appears Altman is not content to let Musk dominate a field he himself has contemplated for years. OpenAI, when approached for comment on the matter, declined to provide a statement.