OpenAI Has Big Hardware Ambitions

Top News

According to a report in Bloomberg, OpenAI has sent out RFPs to U.S. manufacturers for components tied to data centers, robotics, and consumer devices as it prepares a major product expansion. PYMNTS has more here.

X moved to geoblock Grok from generating sexualized and nude images of real people in jurisdictions where it is illegal after regulators opened investigations, some countries banned the chatbot, and watchdogs warned of fines and payment and ad restrictions. The New York Times has more here.

In related news, conservative influencer Ashley St. Clair sued Elon Musk’s xAI, seeking a restraining order to stop its Grok chatbot from generating sexualized deepfake images of her and alleging the product is unreasonably dangerous. (St. Clair is the mother of one of Musk’s children.) The Wall Street Journal has more here.

OpenAI Invests in Sam Altman’s Brain Computer Interface Startup Merge Labs

Image Credits: Getty Images

By Rebecca Bellan

Just when you thought the circular deals couldn’t get any more circular, OpenAI has invested in CEO Sam Altman’s brain computer interface (BCI) startup Merge Labs.

Merge Labs, which defines itself as a “research lab” dedicated to “bridging biological and artificial intelligence to maximize human ability,” came out of stealth on Thursday with an undisclosed seed round. A source familiar with the matter confirmed previous reports that OpenAI wrote the largest single check in Merge Labs’ $250 million seed round at an $850 million valuation.

“Our individual experience of the world arises from billions of active neurons,” reads a statement from Merge Labs. “If we can interface with these neurons at scale, we could restore lost abilities, support healthier brain states, deepen our connection with each other, and expand what we can imagine and create alongside advanced AI.”

Merge Labs said it intends to reach these feats noninvasively by developing “entirely new technologies that connect with neurons using molecules instead of electrodes” to “transit and receive information using deep-reaching modalities like ultrasound.”

The move deepens Altman’s competition with Elon Musk, whose startup Neuralink is also developing computer interface chips that allow people who suffer from severe paralysis to control devices with their thoughts. Neuralink currently requires invasive surgery for implantation, where a surgical robot removes a small piece of skull and inserts ultra-fine electrode threads into the brain to read neural signals. The company last raised a $650 million Series E at a $9 billion valuation in June 2025.

While there are undoubtedly medical use cases for BCIs, Merge Labs seems more focused on using the technology to fulfill a Silicon Valley fantasy of combining human biology with AI to give us superhuman capabilities.

Massive Fundings

Equal1, a nine-year-old Dublin startup that builds quantum servers for data centers using silicon-based processors, raised a $60 million round. Investors included Ireland Strategic Investment Fund, Atlantic Bridge, European Innovation Council Fund, Matterwave Ventures, Enterprise Ireland, Elkstone, and TNO Ventures. The company has raised a total of $85 million. The Irish Times has more here.

Harmonic, a three-year-old Palo Alto startup that develops models for solving complex math problems, revealed that Nvidia is also an investor in the $120 million Series C round it closed in November at a $1.45 billion post-money valuation. Seeking Alpha has more here.

Higgsfield, a three-year-old San Francisco startup that builds tools for creating and editing AI-generated videos, raised an $80 million Series A extension at a $1.3 billion post-money valuation. Accel, with AI Capital Partners, Menlo Ventures, and GFT Ventures invested in the deal, bringing the company’s Series A total to $130 million. TechCrunch has more here.

Listen Labs, a three-year-old San Francisco startup that uses AI interviewers to run customer research at scale, raised a $69 million Series B round at a $500+ million valuation. The deal was led by Ribbit Capital, with Evantic as well as previous investors Sequoia Capital, Conviction, and Pear VC also participating. The company has raised a total of $100 million. Forbes has more here.

Mytra, a four-year-old startup based in Brisbane, CA, that builds warehouse robotics systems for automating heavy material movement across industrial facilities, raised a $120 million Series C led by Avenir Growth, with Kivu Ventures, Liquid 2, D.E. Shaw, and Offline Ventures as well as previous investors Eclipse, Greenoaks, Abstract Ventures, and Promus Ventures also piling on. Fortune has more here.

Osapiens, a seven-year-old startup based in Mannheim, Germany, that provides enterprise software for regulatory compliance and sustainability, raised a $100 million Series C round at a $1+ billion post-money valuation. Decarbonization Partners was the deal lead, with Goldman Sachs Alternatives and Armira Growth also participating. ESG News has more here.

Parloa, a six-year-old Berlin startup that develops AI agents for customer service, raised a $350 million Series D round at a $3 billion post-money valuation, tripling its valuation in just eight months. The deal was led by General Catalyst, with previous investors EQT Ventures, Altimeter Capital, Durable Capital, and Mosaic Ventures also participating. TechCrunch has more here.

Replit, a 10-year-old San Francisco startup that builds AI coding tools that let developers write, debug, deploy, and publish apps from natural language, is reportedly in talks to raise about $400 million led by Georgian at a post-money valuation of $9 billion, triple the valuation of a $250 million round it raised in September. Bloomberg has more here.

Tulip Interfaces, a 12-year-old Boston company that builds manufacturing automation software for frontline operations, raised a $120 million Series D at a $1.3+ billion post-money valuation. The deal was led by Mitsubishi Electric. SiliconANGLE has more here.

Big-But-Not-Crazy-Big Fundings

GovDash, a five-year-old New York startup that helps companies win, manage, and deliver government contracts with AI, raised a $30 million Series B round co-led by Mucker Capital and British Columbia Investment Management Corporation, with Northzone and Y Combinator also pitching in. Pulse 2.0 has more here.

Midnite, an 11-year-old London company that operates a sportsbook and casino, raised a $35 million Series C round led by The Raine Group with Play Ventures, Discerning Capital, Makers Fund, and Big Bets also engaging. The company has raised a total of $75+ million. EU-Startups has more here.

Quadric, a 10-year-old company based in Burlingame, CA, that provides an inference engine embedded inside on-device AI chips for chip designers, raised a $30 million Series C round led by BEENEXT Capital Management, with Uncork Capital, Pear VC, Volta, Gentree, Wanxiang America, Pivotal, and Silicon Catalyst Ventures also taking part. More here.

Talemonster Games, a two-year-old Istanbul startup that builds mobile puzzle games, raised a $30 million Series A round led by Arcadia Gaming Partners and Andreessen Horowitz, with Point72 Ventures and General Catalyst also participating. Business Insider has more here.

Vista AI, a 14-year-old Palo Alto company that automates MRI scanning with AI software, raised a $29.5M Series B round. Investors included Cedars-Sinai Health System, Intermountain Health, University of Utah Hospital System, Temple University/Fox Chase Cancer Center, Tampa General Hospital, Khosla Ventures, and Bold Brain Capital. AuntMinnie has more here.

Smaller Fundings

Atomic Insights, a three-year-old San Diego startup that automates payment requests, approvals, and money movement between RIAs, family offices, custodians, and banks, raised a $10 million seed round led by Aquiline, with Northwestern Mutual Future Ventures also stepping up. More here.

Cyb3r Operations, a four-year-old London startup that aims to provide real-time visibility into third-party cyber risk, raised a $5.4 million round led by Octopus Ventures, with Pi Labs also investing. The company has raised a total of $6.75 million. Tech Funding News has more here.

Meld, a startup that connects companies and individuals to global stablecoin and crypto networks, raised a $7 million round led by Lightspeed Faction and including F-Prime, Yolo Investments, and Scytale Digital. The company has raised a total of $15 million. Fortune has more here.

Noise, a two-year-old New York startup that operates an attention market trading platform for long and short positions on trends, brands, and ideas, raised a $7.1 million seed round led by Paradigm, with Figment Capital, Anagram, GSR, JPEG Trading, and KaitoAI also digging in. (If you’re wondering, attention markets aren’t regulated, unlike prediction markets, which are lightly regulated in the U.S. and viewed as illegal gambling in lots of places outside the U.S.) NFTgators has more here.