The $850M Brain Hack Backed by OpenAI

The Startup That Aims to Let You Think Through Machines

A few weeks ago, I came across a quiet but significant shift in the tech landscape. Sam Altman, known for helming OpenAI, had launched a new venture. Merge Labs. The name didn’t scream headlines, but the details did.

This wasn’t another AI platform. It wasn’t a chatbot. It was something more ambitious: a brain-computer interface that could let users operate digital systems with their thoughts—no implants, no traditional surgery.

Backed by a $250 million seed round led by OpenAI, and joined by Bain Capital and Valve’s Gabe Newell, Merge Labs isn’t short on capital or credibility. Multiple reports confirmed the funding round closed on January 15, 2026, valuing the company at approximately $850 million.

Figure 1: Merge Labs Seed Round Funding Overview (Source: Bloomberg, January 2026)

What Merge Labs is Building

Merge Labs is focused on developing high-bandwidth neural interfaces that rely on non-invasive or minimally invasive technology. Instead of reading the brain’s electrical signals through implants as Neuralink does, Merge uses functional ultrasound (fUS) to detect blood flow changes in the brain, combined with molecular tagging.

This tagging may involve techniques like gene therapy to make neurons responsive to ultrasound or magnetic fields. While this approach avoids open-brain surgery, it’s not as simple as a headset. The technology aims to achieve bandwidth levels previously only available through surgical implants.

The company is structured as a public benefit corporation, which means its mission includes commitments beyond shareholder value.

The founding team includes prominent neuroscientists and entrepreneurs—Mikhail Shapiro (Caltech), Tyson Aflalo, Sumner Norman, Alex Blania, and Sandro Herbig. Shapiro is a leading researcher in ultrasound and molecular engineering. Norman and Aflalo are key researchers from Forest Neurotech. Blania is also CEO of Tools for Humanity.

No Surgery. No Wires. Just Thought.

It’s easy to compare Merge Labs to Neuralink. Both are working in the BCI space. Both are backed by influential figures. But the differences are clear. Neuralink has already implanted chips in human subjects—12, by reported count. Their approach is invasive. Merge is going the opposite route.

It builds on work done by Forest Neurotech. Forest developed the core ultrasound platform that Merge is now refining for real-world use. Early safety trials of that platform are underway in the UK and select research centres globally.

Forest will continue to operate as a nonprofit but will contribute foundational science and experimental data to Merge’s roadmap.

OpenAI’s Role Goes Beyond Funding

OpenAI is more than just an investor in this story. It is a key partner in developing what Merge Labs refers to as the neural operating system.

The challenge in decoding brain signals is not just in capturing them—it’s in interpreting them. OpenAI’s models, trained on vast datasets, are being adapted to map neural data to meaningful digital actions.

Figure 2: The Role of AI in Brain-Signal Translation (Source: OpenAI and Merge Labs)

OpenAI will contribute foundation models and infrastructure support. The collaboration also includes the development of scientific tools to help Merge’s systems identify consistent brain-signal patterns across individuals.

A Global Landscape for Brain-Computer Interfaces

Merge Labs is not alone in this race. Synchron, a US-Australia-based startup, is placing interfaces in blood vessels. They’ve reached over 10 implants so far and are working with Nvidia to develop AI-driven neurotech platforms. Neuralink has reportedly raised over $650 million across its rounds and holds a valuation of about $9 billion.

Merge Labs stands out for its ambition to keep the interface external or minimally invasive. That lowers the barrier to adoption and opens up broader global markets. The company’s technical philosophy is based on the idea that more neurons can be accessed using ultrasound and molecular tagging than through conventional electrodes.

Practical Implications for Global Brands

The idea of controlling a phone, a game, or a medical device with your mind sounds far-fetched. But the funding and research happening now suggest otherwise.

Gaming is an early target. Gabe Newell’s involvement signals an interest in immersive, neural-driven play. Beyond gaming, the tech could support people with disabilities, offer faster input options for professionals, and open new creative channels for digital expression.

Figure 3: Potential Consumer Use Cases for Non-Invasive BCIs (Source: Wired, TipRanks)

Imagine operating design software without lifting a finger. Or sending a message by simply intending it. These are not hypotheticals—they’re design challenges currently being worked on.

What the Numbers Tell Us

The $250 million seed round is one of the largest early-stage investments in neurotech. For context, Neuralink has raised about $280 million across multiple rounds. Merge Labs has nearly matched that with a single raise.

Investors are betting on a fast track to consumer adoption, especially if the need for traditional surgical procedures can be removed. This also points to a broader shift in tech investment. Where AI, wearables, and health data once ran on parallel tracks, they’re now converging.

Data Ownership and Ethics Cannot Wait.

Reading brain signals introduces sensitive questions. Who owns your neural data? How is intent differentiated from impulse? What are the limits of machine response to brain patterns?

Brands entering this space will need frameworks for consent, privacy, and data use. These cannot be afterthoughts. They will shape product design and regulation.

Not Just Western Markets

Merge Labs has global aspirations. The technology being trialled in the UK may expand into other markets where regulatory and healthcare ecosystems support early-stage neurotech deployment.

Governments in Asia and Europe have already funded BCI research. China has invested in neurotech for education and workforce applications. The European Commission has funded Horizon projects related to BCI safety and integration.

In short, this is not a US-centric story.

What’s Next for Merge Labs?

The company has not released a timeline for consumer product rollout. It’s still in R&D mode, but public funding announcements and early trials suggest development is moving quickly.

The big question isn’t whether BCIs will become part of our tech landscape. It’s how soon—and in what form—they’ll arrive.

Merge Labs’ model makes clear that accessibility and scalability are at the core of their strategy. That opens the door to potential partnerships across industries—from hardware manufacturers to content platforms.

If your company touches digital interaction, now is the time to observe this space. Not because it’s speculative, but because capital, research, and application are aligning.

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