As OpenAI files for IPO, Sam Altman’s $2.5 billion startup reportedly cuts jobs

OpenAI's confidential filing for an initial public offering has placed the artificial intelligence company at the centre of investor attention. Yet at the same time, another venture linked to OpenAI chief executive Sam Altman is reportedly moving in the opposite direction.

According to reporting by Business Insider, Tools for Humanity, the company behind the biometric verification project World, is conducting layoffs as it seeks to address commercial challenges.

The reported workforce reduction comes despite the company having secured funding at a US$2.5 billion valuation, highlighting the contrasting trajectories of businesses associated with one of Silicon Valley's most prominent technology leaders.

Diverging fortunes across Altman's ventures

The developments emerged on the same day that OpenAI announced it had confidentially filed paperwork for an IPO, a move widely viewed as a major milestone for the artificial intelligence sector.

Meanwhile, TechCrunch reported that Tools for Humanity is downsizing as it faces difficulties generating revenue from its business model.

TechCrunch said it contacted the company for confirmation regarding the reported layoffs.

The contrast is notable given Altman's involvement in both organisations. While OpenAI has become one of the world's most influential AI companies, Tools for Humanity continues to build a business around digital identity verification and cryptocurrency infrastructure.

World project built around biometric verification

Tools for Humanity is best known for World, formerly known as Worldcoin, a project that uses iris-scanning technology to verify human identities.

At the centre of the initiative is a metallic device known as the Orb, which scans users' irises to create a unique digital identity.

The company believes biometric verification can help distinguish humans from automated bots in an increasingly AI-driven online environment.

The project also supports the broader World ecosystem, including identity verification tied to the use of its associated cryptocurrency.

Key elements of the project include:

• Iris-based biometric identity verification

• The Orb scanning device

• Human verification tools designed to distinguish people from bots

• Integration with the cryptocurrency ecosystem surrounding Worldcoin

The company has positioned the technology as a potential solution to challenges created by the rapid growth of artificial intelligence and automated online activity.

High-profile investors backed the company

Tools for Humanity attracted significant backing from venture capital investors despite questions surrounding its business model and long-term revenue generation.

The company achieved a valuation of approximately US$2.5 billion with support from investors including:

• Andreessen Horowitz

• Bain Capital

• Other blockchain-focused investment funds

The reported layoffs suggest that investor backing alone has not insulated the company from commercial pressures as it seeks to scale its operations.

Partnerships expand as regulatory concerns persist

In the United States, several major technology companies have partnered with the project.

TechCrunch reported that partners include:

• Tinder

• Zoom

• Docusign

However, the company's international expansion has faced regulatory and ethical scrutiny in multiple markets.

Concerns have centred on the collection and use of biometric data, as well as incentives offered to users in exchange for participating in the programme.

Reported developments include:

• Users in Kenya, India and Hong Kong being offered the equivalent of approximately US$50 in Worldcoin for biometric participation

• Kenya subsequently prohibiting World's operations over privacy and financial concerns

• South Korea imposing a fine of approximately US$830,000 for what authorities alleged were violations of local privacy regulations

The company has faced ongoing debate around how biometric information should be collected, stored and used, particularly when linked to digital identity systems and cryptocurrency services.

Revenue questions remain central

The reported downsizing underscores a broader challenge facing many venture-backed technology companies: translating ambitious concepts into sustainable revenue streams.

While OpenAI is preparing for what could become one of the most closely watched IPOs in recent years, Tools for Humanity remains focused on proving the commercial viability of biometric identity verification at scale.

The company's future may depend on its ability to expand adoption, navigate regulatory requirements and demonstrate practical use cases for its technology beyond its existing cryptocurrency ecosystem.

For now, the reported layoffs serve as a reminder that even heavily funded startups backed by some of Silicon Valley's most influential investors remain under pressure to build sustainable businesses in increasingly complex regulatory and economic environments.