As OpenAI confidentially filed for IPO in June 2026, marking a potential milestone for AI startups, attention turned to another Sam Altman venture facing very different momentum. Tools for Humanity, the company behind the iris-scanning cryptocurrency project Worldcoin, is reportedly conducting layoffs. Despite raising funds at a $2.5 billion valuation from major investors like Andreessen Horowitz and Bain Capital, the startup has struggled to generate sustainable revenue. Its model, which offers users $50 in Worldcoin in exchange for biometric iris scans, has drawn criticism and regulatory action in multiple countries.

Worldcoin launched with the goal of verifying human identity in a digital world increasingly populated by AI bots. The silver orb device, known as the Orb, scans users’ irises to confirm they are human, enabling access to the Worldcoin cryptocurrency and digital identity network. Partnerships in the U.S. include companies like Tinder, Zoom, and Docusign, which have explored integrating the verification system. However, international rollout has been rocky. Kenya banned Worldcoin operations over privacy and financial risks, while South Korea imposed an $830,000 fine for violating local data laws.

The divergence between OpenAI’s market success and Worldcoin’s operational challenges highlights the uneven landscape of AI-adjacent ventures. While OpenAI benefits from strong product-market fit and investor confidence, Tools for Humanity faces skepticism about the ethics and scalability of biometric data collection. The company’s future hinges on overcoming regulatory hurdles and proving its model can function beyond early adopter incentives.