OpenAI announced on Monday that it has confidentially filed for an initial public offering, setting the stage for what could become one of the defining tech IPOs of the decade. But the news comes alongside a contrasting development for OpenAI CEO Sam Altman’s other venture: Tools for Humanity, the company behind the Worldcoin iris-scanning project, is reportedly conducting layoffs, according to a report from Business Insider. TechCrunch has reached out to Tools for Humanity for confirmation.
Tools for Humanity is best known for its World verification system, which uses a distinctive silver orb to scan individuals’ irises. The company’s stated goal is to create a global identity verification network that can distinguish humans from bots in an increasingly automated world, while also supporting the trade of its own cryptocurrency, Worldcoin.
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A $2.5 billion valuation meets revenue challenges
Despite raising capital at a $2.5 billion valuation from prominent investors including Andreessen Horowitz and Bain Capital, Tools for Humanity has struggled to generate meaningful revenue. The reported layoffs come as the company faces mounting regulatory and ethical scrutiny over its data collection practices.
In the United States, companies such as Tinder, Zoom, and Docusign have partnered with Altman’s project. But internationally, the reception has been far more cautious.
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Regulatory pushback and privacy concerns
Tools for Humanity has faced significant regulatory headwinds in several countries. In Kenya, India, and Hong Kong, individuals were reportedly offered the equivalent of $50 in Worldcoin in exchange for their biometric data. Kenya subsequently banned World from operating in the country, citing privacy and financial concerns. South Korea also fined the company $830,000 for allegedly violating local privacy law.
The central tension remains: consumers and regulators alike have expressed discomfort with the idea of trading sensitive biometric data for cryptocurrency, a dynamic that has made it difficult for the company to scale trust alongside its technology.
Altman’s dual roles as CEO of OpenAI and chairman of Tools for Humanity place him at the center of two very different narratives: one company preparing for a landmark public offering, the other reportedly downsizing amid questions about its business model and societal acceptance.
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