AsianFin -- Sam Altman, the co-founder of OpenAI, is reportedly co-founding a new brain-computer interface startup named Merge Labs. According to sources speaking to the Financial Times, the company is in the process of raising funds, with a significant portion of the capital potentially coming from OpenAI's ventures team.

Merge Labs is expected to be valued at $850 million. However, sources told TechCrunch that discussions are still in the early stages, and a final commitment from OpenAI has not yet been made, so the terms could still change.

The new venture is also said to be working with Alex Blania, who leads Tools for Humanity—Altman's "Worldcoin" project, which uses eye-scanning to create a digital ID.

Merge Labs will directly compete with Elon Musk's Neuralink, which has been developing implanted brain chips since 2016. Neuralink, valued at $9 billion after a $600 million funding round in June, is currently in human trials with people who have severe paralysis, aiming to help them control devices with their thoughts.