Worldcoin Downsizes as OpenAI Prepares for IPO

Tools for Humanity, founded by Sam Altman, has announced staff layoffs. The company develops Worldcoin, a project that uses biometric data—specifically iris scanning—to verify user identities. The technology is positioned as a solution to combat bots in the age of artificial intelligence and to support its own cryptocurrency.

Despite securing $2.5 billion in investments from firms like Andreessen Horowitz and Bain Capital, the project has encountered significant hurdles. While Tools for Humanity has partnered with companies such as Tinder, Zoom, and DocuSign in the U.S., it has faced major obstacles internationally. In Kenya, Worldcoin’s operations were banned due to privacy and financial risk concerns, and in South Korea, the company was fined $830,000 for violating local data protection laws.

The layoffs at Tools for Humanity coincide with OpenAI’s preparations for an IPO. Altman, who leads both companies, has previously outlined ambitious plans to build infrastructure for digital identity. However, the mass collection of biometric data has sparked criticism and distrust among users and regulators alike.