OpenAI files for IPO as Sam Altman's Tools for Humanity conducts layoffs

OpenAI announced on Monday that it confidentially filed for an IPO. Separately, Tools for Humanity, the company behind the World identity-verification project and led by OpenAI CEO Sam Altman, is reportedly conducting layoffs, according to Business Insider.

Tools for Humanity uses iris scans from a device called an orb to verify people's identities and distinguish human activity from bot activity. The company also uses these scans to validate identities for trading its cryptocurrency, Worldcoin. In the U.S., companies like Tinder, Zoom, and Docusign have partnered with Tools for Humanity.

Tools for Humanity raised money at a $2.5 billion valuation from investors including Andreessen Horowitz and Bain Capital, but is now downsizing as it struggles to create revenue. Internationally, the company has faced regulatory and ethical concerns: Kenya banned World from operating in the country citing privacy and financial concerns, and South Korea fined the company $830,000 for allegedly violating local privacy law.