OpenAI and its co-founder and CEO Sam Altman are backing a new brain-computer interface startup called Merge Labs, which aims to compete with Elon Musk's Neuralink. Merge Labs plans to raise $250 million in funding at an $850 million valuation. Altman will co-found the company alongside Alex Blania but will not be involved in daily operations or invest personally. Much of the funding is expected to come from OpenAI's venture arm. The new venture marks an escalation in the rivalry between Altman and Musk, focusing on developing AI-powered brain implants to connect human brains with computers.