Sam Altman is preparing to co-found a new company funded by OpenAI that will go up against Elon Musk's Neuralink.

The new venture will go head-to-head with Elon Musk’s brain chip startup Neuralink. Altman is reportedly betting that AI can give his chips an edge over existing competitors. OpenAI did not immediately respond to a request for comment from Gizmodo.

Sam Altman is reportedly entering in brain-computer interface domain through a new startup, Merge Labs. The company is reportedly valued at $850 million. Merge Labs is expected to develop advanced neural interface systems that may soon allow humans to interact with machines based on their thoughts,