Explainer: What Is Merge Labs, Sam Altman-Backed BCI Firm That Has Secured OpenAI Investment?

Merge Labs is working on BCI technology that allows users to interact with computers using neural signals.

Advertisement
Read Time: 3 mins
Merge Labs is working on BCI technology that allows users to interact with computers using neural signals. (Photo: Pixabay)
Pixabay

Sam Altman-backed Merge Labs has secured fresh investment from OpenAI, which participated in the startup's seed funding round, though the company did not disclose the amount invested.

“We are excited to support and collaborate with Merge Labs as they turn an ambitious idea into reality and ultimately products that are useful for people,” OpenAI said in a blog post.

Advertisement

Bloomberg reported that the startup's seed funding totalled $252 million, while TechCrunch, citing a source, estimated the figure to be closer to $250 million. The round is reported to have attracted investors such as Bain Capital and Valve co-founder Gabe Newell.

What Is Merge Labs?

Merge Labs describes itself as “a research lab with the long-term mission of bridging biological and artificial intelligence to maximise human ability, agency, and experience.”

Advertisement

It is a brain-computer interface (BCI) startup whose co-founders include Mikhail Shapiro, Tyson Aflalo, and Sumner Norman. OpenAI said they are complemented by technology entrepreneurs Alex Blania, Sandro Herbig and Sam Altman in a personal capacity.

Merge Labs is working on BCI technology that allows users to interact with computers using neural signals. While many existing BCIs rely on surgically implanted devices, the startup says it is aiming to create a far less invasive system capable of handling significantly more data.

Advertisement

“Our individual experience of the world arises from billions of active neurons. If we can interface with these neurons at scale, we could restore lost abilities, support healthier brain states, deepen our connection with each other, and expand what we can imagine and create alongside advanced AI,” Merge Labs said in a blog post. 

“To make this happen, we're developing entirely new technologies that connect with neurons using molecules instead of electrodes, transmit and receive information using deep-reaching modalities like ultrasound, and avoid implants into brain tissue. Recent breakthroughs in biotechnology, hardware, neuroscience, and computing made by our team and others convince us that this is possible.”

As per a report by SiliconANGLE, the company traces its origins to an in-house research effort launched several years ago at Forest Neurotech, a non-profit organisation specialising in BCI research. That work led to the development of Forest-1, an ultrasound-based system designed to image brain activity over a wider range than traditional electrodes, allowing for richer data collection.

The Financial Times reported in August 2025 that OpenAI CEO Sam Altman was among the founders of Merge Labs, though he was not expected to put personal capital into the venture. According to people familiar with the matter, the startup was seeking an $850 million valuation in its first funding round.

Advertisement

According to TechCrunch, the development sharpens Altman's rivalry with Elon Musk, whose company Neuralink is working on implantable BCI chips designed to help people with severe paralysis operate devices using neural signals. Neuralink's system involves a surgical procedure in which a robot removes a small section of skull before placing fine electrode threads into the brain.

Although brain–computer interfaces have clear medical applications, Merge Labs appears to be placing greater emphasis on more ambitious goals, pursuing a Silicon Valley vision that blends human biology with artificial intelligence to extend human capabilities, reported TechCrunch.

Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.

Loading...