OpenAI invests in brain-computer interface developer Merge Labs – News

OpenAI Group PBC has invested in Merge Labs Inc., a startup developing hardware that will enable users to control computers with their thoughts.

The large language model provider announced the deal today. Bloomberg described the investment as a $252 million seed round, while News cited a source as saying that Merge Labs raised $250 million. Besides OpenAI, the deal reportedly also included the participation of Bain Capital, billionaire tech entrepreneur Gabe Newell and others.

Merge Labs is building a brain-computer interface, or BCI, a system that makes it possible to control computers with thoughts. Most BCIs take the form of a compact device that has to be implanted through surgery. Merge Labs intends to develop a BCI that is “much less invasive” and can provide more bandwidth than current systems.

One of the ways the company hopes to achieve its goal is by equipping its device with an ultrasound module. Currently, MCIs mainly rely on electrodes to detect user instructions. An ultrasound module significantly reduces the need for electrodes because it uses sound waves to collect data.

“To make this happen, we’re developing entirely new technologies that connect with neurons using molecules instead of electrodes, transmit and receive information using deep-reaching modalities like ultrasound, and avoid implants into brain tissue,” Merge Labs staffers wrote in a blog post.

The company got its start few years ago as an internal project at Forest Neurotech, a nonprofit research group focused on BCI development. The lab developed a system called the Forest-1 that uses ultrasound to image the brain. One of the device’s flagship features is that it has a longer range than electrodes, which enables it to collect more brain activity data.

In August, the Financial Times reported that OpenAI Chief Executive Officer Sam Altman is part of Merger Labs’ founding team but won’t be investing in the company. Sources told the paper that the BCI developer was targeting a valuation of $850 million with its initial fundraise.

OpenAI stated today that it will help Merge Labs build “scientific foundation models and other frontier tools.” In 2024, the ChatGPT developer launched a program that enables companies to commission customized versions of its LLMs. Merge Labs could, for example, ask OpenAI to train an LLM on clinical datasets.

One of the challenges facing MCI developers is that the intent signals detected by such devices are often partial or noisy. Merge Labs plans to develop an “AI operating system” capable of interpreting brain activity data. Additionally, the company will use AI models to speed up its neuroscience and hardware engineering initiatives. 

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