Butterfly Network and Merge Labs have signed a multi-year licensing agreement to advance ultrasound-based brain-computer interfaces, with Butterfly providing access to its Poseidon family of ultrasound-on-chip technology through its licensing subsidiary, Butterfly Embedded.
The collaboration marks a significant step in the development of neural interface technologies, with Merge Labs aiming to create personalized systems that could eventually help restore abilities affected by injury or disease. The agreement includes upfront and milestone-based license payments, hardware purchase commitments, and technology access fees to Butterfly, with ongoing royalties expected on future commercial sales.
Merge Labs’ Vision and Funding
Merge Labs, cofounded by Aflalo, OpenAI CEO Sam Altman, Alex Blania, Sandro Herbig, Sumner Norman, and Mikhail Shapiro, and backed by $252 million in seed funding from investors including OpenAI, Bain Capital, Interface Fund, Fifty Years, and Gabe Newell, is focused on developing brain-computer interfaces designed to connect with neurons using molecules rather than electrodes. The research lab aims to explore deep-reaching modalities such as ultrasound for communication with the brain.
We believe ultrasound has tremendous potential to enable a new generation of neural interfaces,
said Tyson Aflalo, Co-Founder, Merge Labs. Our goal is to take the fastest and safest path to building the best technology possible, while enabling valuable R&D on downstream applications along the way.
Butterfly Network’s Role and Technology
Butterfly Network, known for its ultrasound-on-chip technology, will serve as Merge’s exclusive chip-based ultrasound partner. The agreement provides a foundation for Merge to develop its own personalised neural interface technologies and systems while retaining the right to license its technology to other companies in the brain-computer interface (BCI) field. Butterfly has also been expanding applications for its ultrasound-on-chip technology beyond handheld clinical imaging.
Joseph DeVivo, President, Chief Executive Officer, and Chairman of Butterfly Network, emphasized the company’s commitment to supporting Merge Labs’ research and development efforts. “We’re pleased to partner with Merge Labs and proud that they have selected Butterfly as their exclusive platform for research and development. We are committed to supporting their team as they advance this work from research toward commercialization,” he said.
Historical Context and Previous Collaborations
This partnership follows Butterfly’s previous work in brain-computer interfaces. In 2023, the company entered a five-year collaboration with Forest Neurotech to develop a whole-brain neural interface that could use ultrasound to image and stimulate the brain.
Merge Labs stated that the initiative seeks to develop neural-interface technologies that could eventually help restore abilities affected by injury or disease.
The multi-year agreement includes upfront and milestone-based license payments, hardware purchase commitments, and technology access fees to Butterfly, with ongoing royalties expected on future commercial sales.
For now, the focus remains on advancing the research phase, with both companies emphasizing the importance of collaboration and innovation. As the project progresses, stakeholders will be watching closely to see how this partnership shapes the future of neural interface technologies.