OpenAI and its co-founder Sam Altman are backing a new brain-computer interface startup called Merge Labs, which aims to compete directly with Elon Musk's Neuralink. Merge Labs is targeting a $250 million funding round at an $850 million valuation. Altman will serve as a co-founder alongside Alex Blania, a co-founder of Worldcoin, but will not be involved in the company's daily operations nor invest personally. Much of the funding is expected to come from OpenAI's venture arm. The startup's focus is on developing AI-powered brain implants designed to connect human brains with computers, intensifying the rivalry between Altman and Musk in the neurotechnology space.