OpenAI is moving from software to the human skull. On January 15, 2026, the AI giant announced it had led a $250 million seed funding round for Merge Labs, a research startup co-founded by its own CEO, Sam Altman. The investment marks a pivot toward hardware and human augmentation, aiming to create a high-bandwidth link between human neurons and artificial intelligence.
Merge Labs vs. Neuralink: A Clash of Philosophies
While Elon Musk’s Neuralink relies on surgical robots to implant ultra-fine threads into the brain, Merge Labs is taking a “radically non-invasive” approach.10
- The Molecule Link: Merge Labs is developing “molecular interfaces” that can connect with neurons without the need for traditional electrodes.
- Ultrasound Modality: Instead of physical wires, the system uses deep-reaching ultrasound to transmit and receive data through the skull.
- The Goal: While Neuralink focuses on medical restoration (helping paralyzed patients walk or type), Merge Labs is focused on “The Merge”—enhancing healthy human cognition to keep pace with AI.
Financials and Partnerships
The $250 million round reportedly included participation from Bain Capital, Valve co-founder Gabe Newell, and other billionaire tech visionaries.
| Aspect | Merge Labs (OpenAI Backed) | Neuralink (Musk Backed) |
| Latest Funding | $250 Million (Seed) | $600 Million (Series E) |
| Valuation | $850 Million | ~$9 Billion |
| Invasiveness | Non-invasive (Ultrasound/Molecules) | Invasive (Surgical Implants) |
| AI Integration | Native OpenAI “Foundation Models” | xAI / Grok Integration |
The “Altman Vision” Realized
The investment is the culmination of a decade-long obsession for Sam Altman. In a 2017 blog post, he famously wrote, “We will be the first species ever to design our own descendants… the merge has already started.”
By backing Merge Labs, OpenAI isn’t just funding a hardware startup; it is securing the “chokepoint” for how humans will interact with intelligence in the 2030s. OpenAI has confirmed it will collaborate with the lab to build “scientific foundation models” specifically designed to decode complex neural signals in real-time.
Ethical Concerns and the “Sam Altman Loop”
The deal has raised eyebrows in Silicon Valley due to the “circular” nature of the investment. Critics point out that OpenAI (led by Altman) is investing massive sums into Merge Labs (also co-founded by Altman), which will then likely pay OpenAI for API access. This follows a pattern seen with Altman-backed firms like Helion Energy and Oklo.
Despite the controversy, the market response has been electric. Analysts suggest that if Merge Labs successfully demonstrates a non-invasive “thought-to-text” interface by late 2026, it could render surgical BCI solutions obsolete for the general consumer market.
Conclusion
The $250 million investment in Merge Labs is a strategic declaration: OpenAI does not intend to remain a chatbot company. In 2026, the company is betting that the final frontier of AI is not the cloud, but the human brain itsel. As the rivalry between Altman and Musk moves from the boardroom to the neural cortex, the race to define the “next version of humanity” has officially begun.
