Sam Altman’s rival to Neuralink reportedly eying gene therapy technology

A novel gene therapy idea is reportedly among the focus areas considered by Merge Labs, a new brain-computer interface startup positioned by its backers, including Sam Altman and his AI firm OpenAI, as a potential rival to Tesla (TSLA) CEO Elon Musk’s neurotechnology company Neuralink.

Merge Labs is evaluating an experimental gene therapy approach designed to alter brain cells, Bloomberg News reported on Friday, citing people familiar with the plans.

The people, who were not authorized to speak publicly about the plans, added that the company is also looking at the idea of developing an ultrasound device that can be implanted on the head and then used to sense and control the activity of modified brain cells.

On Wednesday, the Financial Times reported that Merge Labs was planning to raise roughly $250M at a valuation of about $850M, with a substantial portion of that funding expected to come from Microsoft (NASDAQ:MSFT)-backed OpenAI.

Altman will co-found the venture but was not expected to commit his personal funds to the business and is unlikely to be involved in its daily operations, according to the FT report.

Having co-founded OpenAI in 2015, Musk and Altman had a public falling out, leading to the former’s departure from the company’s board three years later. With Merge Labs, their fierce rivalry in the AI space is expected to extend to the field of brain-computer interface.