Merge Labs Files Prospectus: Altman-Backed Startup Challenges Neuralink with Gene-Ultrasound BCI Approach

"STAR Market Daily" October 27th NewsRecently, Merge Labs, a U.S. brain-computer interface company co-founded by Sam Altman, the "Father of GPT," has achieved its latest progress.

It is reported that the company has hired Mikhail Shapiro, a biomolecular engineer at the California Institute of Technology (Caltech), as a founding team member, and he has been identified as a key leader in discussions with investors. Public information indicates that Merge Labs currently plans to raise $250 million at a valuation of $850 million.A significant portion of the funding will come from OpenAI’s venture capital team.。

Regarding Shapiro, this scholar has published papers on genes and non-invasive imaging in both Nature and Science. In the field of brain-computer interfaces, unlike Neuralink’s craniotomy-based approach, Shapiro focuses on non-invasive techniques for neural imaging and control, such as using ultrasound to interact with the human brain. In a recent lecture, Shapiro stated that rather than inserting electrodes into brain tissue, it is preferable to introduce genes into cells to modify the brain tissue.

It is worth mentioning that, according to insiders, the brain-computer interface solution currently being explored by Merge Labs is precisely at the forefrontUsing semi-invasive or non-invasive methodsDeploy ultrasound devices and apply gene therapy to detect and modulate brain cell activity.

In fact, even Altman himself has expressed dissatisfaction with invasive brain-computer interface approaches. This August, he stated that he would “absolutely not implant anything into the brain that destroys neurons, like Neuralink does.” Alex Blania, another co-founder of Merge Labs, noted that Neuralink’s approach destroys more neurons than it protects.

In the coming weeks, Merge Labs is expected to officially announce the recruitment of Shapiro. Altman is anticipated to serve as Chairman of Merge Labs but will not be involved in day-to-day operations.

▌The Debate Over Brain-Computer Interface Approaches

Undeniably, from the current perspective, Neuralink, under Elon Musk’s leadership, is at the forefront of the brain-computer interface (BCI) industry. By implanting BCI chips via an invasive approach, it has helped more than ten patients, including those with amyotrophic lateral sclerosis (ALS) and spinal cord injuries, regain their speech or motor functions.

According to Neuralink’s roadmap, the company plans to operate approximately five large-scale clinics within six years and offer at least three versions of its implantable devices, designed respectively for brain-computer interface communication, vision restoration, and the treatment of neurological disorders. By 2031, the company aims to implant brain-computer interface chips in 20,000 patients annually, generating annual revenue of at least $1 billion.

However, invasive brain-computer interfaces (BCIs) also raise safety concerns. Previously, Neuralink was reported to have experimental monkeys that developed complications such as infections and brain damage after implantation of BCI devices. Its first human patient also experienced electrode retraction issues post-implantation, resulting in a temporary partial loss of control over the device.

In the field of non-invasive brain-computer interfaces (BCIs), related products acquire electroencephalogram (EEG) signals via external devices, without damaging the human body or tissues. These systems are characterized by excellent biocompatibility and safety, as well as low cost. As the most widely applied and highly commercialized BCI technology currently, it accounts for up to 78% of the global market share.

In China, multiple stakeholders are actively promoting the clinical implementation of invasive brain-computer interfaces (BCIs). Several regions, including Jiangsu, Zhejiang, and Hubei provinces, have publicly listed pricing items for BCI-related medical services. Among these, invasive BCI procedures have been clearly priced, with an implantation fee of approximately RMB 6,600 per procedure and a removal fee of approximately RMB 3,200 per procedure.

Guotai HaitongSecurities research reports point out that invasive and non-invasive technical approaches are developing toward different types of application scenarios, respectively, and will continue to coexist and integrate with each other for a certain period. From the perspective of current technological levels,Both technological pathways face distinct challenges that remain to be resolved, which precludes one from replacing the other. Instead, they will coexist, with invasive approaches serving multifaceted applications in the medical and scientific research domains, while non-invasive approaches cater to the consumer market., and in certain circumstances, the two may even combine.

Regarding investment directions, the institution stated that downstream technologies and products in the brain-computer interface (BCI) industry chain mainly focus on specific application scenarios, which can be categorized into several sectors, including healthcare, consumer lifestyle, industrial production, and transportation/driving applications. Currently, BCI technology is predominantly applied in the "monitoring" phase of brain disorders, with future prospects promising comprehensive deployment across therapeutic solutions for these conditions. At present, the medical field represents the most extensive area of BCI application. In the consumer sector, BCI companies have begun introducing products such as sleep and attention monitoring devices to the general public; however, these have not yet reached large-scale consumer adoption.