OpenAI has confidentially filed for an initial public offering, while Sam Altman’s other company, Tools for Humanity, is reportedly laying off employees. The two developments place Altman-linked companies in different positions, with OpenAI preparing for public markets and Tools for Humanity facing questions about revenue from its identity verification project.
OpenAI said in its official filing announcement that it submitted a confidential S-1 to the U.S. Securities and Exchange Commission. The company said it has not decided on timing and may remain private for a while, but the filing gives it the option to go public sooner if needed.
Tools For Humanity Reportedly Cuts Staff
Tools for Humanity is reportedly laying off employees, according to Business Insider. TechCrunch said it has contacted the company for confirmation.
The company is best known for World, formerly known as Worldcoin, and its biometric verification device called the Orb. The project aims to verify that users are human through iris scans and give them a digital identity known as World ID.
The Orb is described by World as a device built by Tools for Humanity to verify that someone is a unique human without collecting other personal information. The project has also been tied to Worldcoin, its related cryptocurrency.
World Faces Revenue And Regulatory Questions
Tools for Humanity has raised money at a reported $2.5 billion valuation from investors including Andreessen Horowitz and Bain Capital. The company has also worked with U.S. partners including Tinder, Zoom, and Docusign, according to the source article.
Internationally, the project has faced scrutiny over biometric data collection. In countries including Kenya, India, and Hong Kong, people were offered the equivalent of $50 in Worldcoin in exchange for biometric verification.
Kenya later 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.
OpenAI Moves Toward Public Markets
The reported layoffs come as OpenAI prepares for a possible IPO. According to TechCrunch, OpenAI’s confidential filing was announced on Monday and follows a similar move by Anthropic.
OpenAI has not shared pricing, fundraising targets, or a listing date. The company said the filing gives it more flexibility while it continues work that may be easier to complete as a private company.
Featured image credits: World Economic Forum via flickr
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