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Is Sam Altman preparing to challenge Musk’s Neuralink? Reports indicate…

by Mark Owen
August 16, 2025
in Tech
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Is Sam Altman preparing to challenge Musk’s Neuralink? Reports indicate…
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Sam Altman, the chief executive of OpenAI, is in the process of co-founding a startup focused on brain-to-computer interfaces named Merge Labs, as reported by the Financial Times.

This venture is reportedly aiming to secure funding at a potential valuation of $850 million, with some of the investment possibly sourced from OpenAI’s own ventures division. Sources informed TechCrunch that discussions are still in the preliminary stages and OpenAI has not yet committed to participating, indicating that the terms may still be subject to change.

Merge Labs is said to be working in collaboration with Alex Blania, who leads Tools for Humanity, the organization responsible for Altman’s iris-scanning digital ID initiative. The new enterprise would directly compete with Elon Musk’s Neuralink, which is focused on developing brain implants that enable individuals with severe paralysis to control devices solely through thought. Neuralink, established in 2016 and valued at $9 billion following a fundraising round in June, is currently conducting human trials.

The notion of “the merge”—the integration of humans with technology—has long intrigued both Musk and Altman. In a blog post from 2017, Altman stated that the merge “has already begun” and forecasted that humans would become “the first species ever to design our own descendants.” This concept predates Silicon Valley’s current obsession with artificial general intelligence and connects back to earlier ideas surrounding “the singularity.”

The two technology leaders, who were once co-founders of OpenAI, have since turned into open competitors. Musk departed from the organization in 2018, and their relationship has deteriorated, with the two exchanging public criticisms on X this week. Should Merge Labs proceed, it would represent Altman’s attempt to establish a presence in a domain that Musk has advocated for, marking a new chapter in their intensifying rivalry.

Elon Musk vs Sam Altman
Elon Musk and Sam Altman were previously co-founders of OpenAI, but their relationship deteriorated after Musk’s departure in 2018. Since that time, they have emerged as rivals, each leading competing AI enterprises: Musk’s xAI and Altman’s OpenAI.

The conflict has unfolded in both the business realm and through public disagreements. Musk has expressed his discontent with OpenAI’s trajectory and attempted to reacquire it, whereas Altman has continued to advance commercial expansion. This week, the situation intensified when Musk alleged that Apple was preferentially supporting OpenAI’s ChatGPT in the App Store. In turn, Altman accused Musk of using X to serve his own interests.

Their competition now encompasses technology, influence, and personal standing, with both individuals establishing themselves as frontrunners in the quest to define the future of AI.

Tags: Elon MuskOpenAISam Altman
Mark Owen

Mark Owen

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