Sam Altman is co-founding a brain-computer interface startup named Merge Labs and seeking capital for this venture, with potential funding sources reportedly including OpenAI's venture team, according to unnamed sources.

The startup is said to be valued at $850 million. A source familiar with the discussions told TechCrunch that negotiations are in early stages, with OpenAI not yet committed to participation, leaving terms potentially subject to change.

Merge Labs has also partnered with Alex Blania, who leads Tools for Humanity (formerly known as World) - a project initiated by Altman that utilizes eye-tracking technology to verify human identity, as described by the company.

This new venture will directly compete with Elon Musk's Neuralink, which develops implantable brain interface chips. Founded by Musk in 2016 (though publicly revealed in 2017), Neuralink has made significant technological advancements.

Currently conducting trials on individuals with severe paralysis, Neuralink aims to enable mind-controlled device operation. In June, it secured $600 million in Series E funding at a $9 billion valuation.

Both Neuralink and Merge Labs could potentially revolutionize human-technology interaction. Some observers argue their technologies might propel humanity toward technological "Singularity."

Silicon Valley's fascination with the concept of "Singularity" predates its current enthusiasm for artificial general intelligence (AGI). Musk popularized this term to describe an era when AI surpasses human intelligence, while the original definition (from Dino Buzzati's 1960s novel) refers to the fusion of technology and humanity.

In a 2017 blog post, Altman discussed "convergence," stating "While convergence is already underway, it will become even more profound. We'll be the first species to design our own descendants," referencing OpenAI research he observed during Musk's tenure as co-founder.

Musk left OpenAI in 2018, and relations between the two tech leaders have since deteriorated. This week alone witnessed public disputes on X, where Altman accused Musk of manipulating the platform while Musk called Altman a fraudster.

While we await official announcements about Merge Labs, it's clear Altman intends to challenge Musk's dominance in this critical technological arena.