OpenAI Invests in AI Startup Merge Labs
What happened
OpenAI is leading a major investment in Merge Labs, a Bay Area AI startup, at an $850 million valuation. The move is intended to strengthen OpenAI's position in scalable AI infrastructure. This investment highlights a robust funding and M&A environment for AI companies in San Francisco.
Why it matters
- The investment is part of a roughly $252 million seed funding round with OpenAI as the lead investor; other backers include Bain Capital and Valve's Gabe Newell. - Merge Labs is developing non-invasive brain-computer interfaces (BCIs) that use molecules instead of electrodes and deep-reaching modalities like ultrasound, avoiding the need for surgical implants into brain tissue. - This approach, based on a field called sonogenetics, involves genetically modifying brain cells to make them responsive to ultrasound waves. - The company was co-founded by researchers Mikhail Shapiro, Tyson Aflalo, and Sumner Norman, along with technology entrepreneurs Alex Blania, Sandro Herbig, and OpenAI's CEO Sam Altman in a personal capacity. - Merge Labs is positioned as a competitor to Elon Musk's Neuralink but is initially focused on a less invasive technology with a long-term goal of human-AI integration beyond just medical applications. - OpenAI plans to collaborate with Merge Labs on developing scientific foundation models and AI operating systems that can interpret neural signals, turning them into actionable intent for AI systems. - The Bay Area, where Merge Labs is based, attracted over 50% of all global funding for AI startups in 2023, totaling $27 billion.
Key numbers
- OpenAI is leading a major investment in Merge Labs, a Bay Area AI startup, at an $850 million valuation.
- - The investment is part of a roughly $252 million seed funding round with OpenAI as the lead investor; other backers include Bain Capital and Valve's Gabe Newell.
- The Bay Area, where Merge Labs is based, attracted over 50% of all global funding for AI startups in 2023, totaling $27 billion.
What happens next
- OpenAI plans to collaborate with Merge Labs on developing scientific foundation models and AI operating systems that can interpret neural signals, turning them into actionable intent for AI systems.
Quick answers
What happened in OpenAI Invests in AI Startup Merge Labs?
OpenAI is leading a major investment in Merge Labs, a Bay Area AI startup, at an $850 million valuation. The move is intended to strengthen OpenAI's position in scalable AI infrastructure. This investment highlights a robust funding and M&A environment for AI companies in San Francisco.
Why does OpenAI Invests in AI Startup Merge Labs matter?
The investment is part of a roughly $252 million seed funding round with OpenAI as the lead investor; other backers include Bain Capital and Valve's Gabe Newell. Merge Labs is developing non-invasive brain-computer interfaces (BCIs) that use molecules instead of electrodes and deep-reaching modalities like ultrasound, avoiding the need for surgical implants into brain tissue. This approach, based on a field called sonogenetics, involves genetically modifying brain cells to make them responsive to ultrasound waves. The company was co-founded by researchers Mikhail Shapiro, Tyson Aflalo, and Sumner Norman, along with technology entrepreneurs Alex Blania, Sandro Herbig, and OpenAI's CEO Sam Altman in a personal capacity. Merge Labs is positioned as a competitor to Elon Musk's Neuralink but is initially focused on a less invasive technology with a long-term goal of human-AI integration beyond just medical applications. OpenAI plans to collaborate with Merge Labs on developing scientific foundation models and AI operating systems that can interpret neural signals, turning them into actionable intent for AI systems. The Bay Area, where Merge Labs is based, attracted over 50% of all global funding for AI startups in 2023, totaling $27 billion.
