Sam Altman is reportedly working to co-found a brain-computer interface startup called Merge Labs, according to sources.

Merge Labs is in early fundraising talks and may be valued at US$850 million, with potential investment from OpenAI’s ventures arm, though OpenAI has not confirmed its participation.

Altman is said to be collaborating with Alex Blania, who leads Tools for Humanity, Altman’s digital ID project.

Merge Labs would enter a market where it would compete with Neuralink, Elon Musk’s company developing implantable brain chips.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ BCI market growth supports aggressive startup valuations

Merge Labs’ reported $850 million valuation reflects the growth trajectory of the brain-computer interface market.

The global BCI market is projected to grow from $2.3 billion in 2024 to $4.5 billion by 2029, representing a 14.2% compound annual growth rate1.

Other projections estimate growth reaching $12.87 billion by 2034 at a 16.7% growth rate2.

This expansion explains why investors might value an early-stage startup highly, especially one co-founded by someone with Altman’s track record.

For context, while Merge Labs’ valuation seems substantial, it’s still dwarfed by Neuralink’s $9 billion valuation after raising $600 million in June.

Even established BCI companies like MindMaze, founded in 2012, raised $108.5 million over multiple years3, showing how the sector has historically required significant capital to develop viable products.

2️⃣ Multiple BCI approaches create room for competitors despite Neuralink’s lead

The BCI landscape accommodates different technical approaches and applications, suggesting space for both Neuralink and Merge Labs to coexist.

While Neuralink focuses on invasive brain implants for medical applications like treating paralysis, other companies pursue non-invasive approaches using EEG technology for consumer applications45.