Just when it seemed the cycle of interconnected deals couldn't become more tightly wound, OpenAI has made an investment into Merge Labs, the brain-computer interface startup led by its own CEO, Sam Altman. Emerging from stealth on Thursday, Merge Labs describes itself as a "research lab" focused on "bridging biological and artificial intelligence to maximize human ability," and announced an undisclosed seed round. A source confirmed earlier reports that OpenAI contributed the largest single investment in this $250 million seed funding, which values the company at $850 million.

"Our individual experience of the world arises from billions of active neurons," Merge Labs stated. "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."

The company aims to achieve these goals through non-invasive methods, developing "entirely new technologies that connect with neurons using molecules instead of electrodes" to "transmit and receive information using deep-reaching modalities like ultrasound."

This investment intensifies Altman's rivalry with Elon Musk, whose venture Neuralink is also creating computer interface chips designed to help individuals with severe paralysis control devices mentally. Neuralink's current approach requires invasive surgery, using a surgical robot to remove a small skull section and implant ultra-fine electrode threads into the brain to read neural signals. That company last secured $650 million in a Series E round at a $9 billion valuation in June 2025.

While medical applications for BCIs are clear, Merge Labs appears more oriented toward a Silicon Valley vision of merging human biology with AI to unlock superhuman potential. "Brain computer interfaces (BCIs) are an important new frontier," OpenAI noted in a blog post. "They open new ways to communicate, learn, and interact with technology. BCIs will create a natural, human-centered way for anyone to seamlessly interact with AI. This is why OpenAI is participating in Merge Labs’ seed round."

Beyond Altman, Merge Labs' co-founders include Alex Blania and Sandro Herbig, who are CEO and product and engineering lead at Tools for Humanity—another Altman-backed company known for its eye-scanning Worldcoin orbs. Other founders are Tyson Aflalo and Sumner Norman of implantable neural tech firm Forest Neurotech, and Caltech researcher Mikhail Shapiro.

As part of the arrangement, OpenAI will collaborate with Merge Labs on scientific foundation models and other advanced tools to "accelerate progress." OpenAI's blog post added that AI will not only speed up research in bioengineering, neuroscience, and device engineering, but the interfaces themselves will be enhanced by AI operating systems that "can interpret intent, adapt to individuals, and operate reliably with limited and noisy signals."

In essence, Merge Labs could act as a direct interface for OpenAI's software. This highlights the circular logic of the deal: if Merge Labs succeeds, it could channel more users to OpenAI, thereby validating OpenAI's investment. It also boosts the value of a startup owned by Altman, funded by resources from the company he leads.

OpenAI is also partnering with Jony Ive's startup, io, which it acquired last year, to develop screenless AI hardware. Recent unverified leaks indicate this device may take the form of an earbud. OpenAI typically invests via the OpenAI Startup Fund, which has backed several other Altman-linked startups like Red Queen Bio, Rain AI, and Harvey.

Additionally, OpenAI has established commercial agreements with startups where Altman has personal ownership or leadership roles, including nuclear fusion company Helion Energy and nuclear fission firm Oklo. Altman has long been fascinated by the concept of the "Merge"—the convergence of humans and machines—dating back to at least 2017 when he published a blog post predicting it could occur between 2025 and 2075.

He suggested the merge might manifest in various ways, from directly connecting electronics to our brains to forming deep relationships with AI chatbots. Altman framed this merge as humanity's "best-case scenario" for coexisting with superintelligent AI, which he views as a separate species potentially in conflict with humans.

"Although the merge has already begun, it’s going to get a lot weirder," Altman wrote. "We will be the first species ever to design our own descendants. My guess is that we can either be the biological bootloader for digital intelligence and then fade into an evolutionary tree branch, or we can figure out what a successful merge looks like."