OpenAI's Circular Bet on the Brain-Computer Future

Sam Altman is building a neural bridge between your brain and AI—one that could also become a golden ticket for OpenAI.

OpenAI led a $250 million seed round for Merge Labs at an $850 million valuation, creating a financial entanglement between Altman’s ventures. Merge Labs describes its mission as "restoring lost abilities...expand what we can imagine and create alongside advanced AI."

"If we can interface with these neurons at scale, we could restore lost abilities...expand what we can imagine and create alongside advanced AI."

Merge Labs is pursuing non-invasive brain-computer interfaces (BCIs) using "deep-reaching modalities like ultrasound," contrasting with Neuralink’s surgical implant approach.

OpenAI will collaborate on "scientific foundation models" to interpret neural signals, though no commercial BCI products have shipped from either company yet.

The Feedback Loop

Altman’s ownership of Merge Labs overlaps with OpenAI’s investment, creating a circular dynamic where Merge’s R&D progress could justify OpenAI’s valuation.

This mirrors Altman’s broader strategy of cross-investing in ventures like Helion Energy and Oklo, raising questions about resource allocation across his portfolio.

Both Merge Labs and Neuralink remain in research/demo phases, with no revenue-generating products to date.

The $850 million valuation for Merge Labs reflects speculative bets on future capabilities rather than current commercial viability.