Microsoft-backed (MSFT) AI firm OpenAI has invested in Merge Labs, a brain-computer interface startup founded by its own CEO, Sam Altman. Merge Labs came out of stealth this week with a $250 million seed round that valued the company at $850 million, and OpenAI reportedly wrote the largest single check. Interestingly, the startup says that its mission is to connect human brains with artificial intelligence so people can think, communicate, and interact with technology in entirely new ways. In a statement, Merge Labs said that if scientists can connect to neurons at scale, it could help restore abilities and improve brain health.
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However, unlike Elon Musk’s Neuralink, which requires brain surgery to implant electrodes, Merge Labs plans to build a non-invasive system. The company says it wants to use molecules and technologies like ultrasound to send and receive information from neurons without opening the skull. That approach puts it in direct competition with Neuralink, which raised $650 million at a $9 billion valuation in 2025 and currently focuses on helping paralyzed patients control devices with their thoughts. While medical uses are clearly part of the picture, Merge Labs also appears interested in blending human intelligence with AI to create “superhuman” capabilities.
Indeed, OpenAI said in a blog post that brain-computer interfaces are a key way for people to interact naturally with AI, which is why it invested in Merge Labs and will help it build scientific models and AI systems. In return, Merge Labs could eventually act like a remote control for OpenAI’s software by sending human intent straight from the brain into AI tools. That could ultimately drive more users to OpenAI.
Is MSFT Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 32 Buys and two Holds assigned in the last three months. Furthermore, the average MSFT price target of $631.36 per share implies 37.5% upside potential.
