Artificial intelligence giant OpenAI has secretly submitted an IPO application, causing a shock in the tech industry. However, at the same time, Tools for Humanity, a eye-scanning startup co-founded by OpenAI's CEO Sam Altman, sent an email to employees on Monday announcing a heartbreaking layoff decision.

High Valuation but Difficult to Monetize

Although Tools for Humanity currently has a valuation of $2.5 billion and has attracted millions of registered users, the company has long been unable to prove that its core iris scanning device "Orb" can generate sustainable revenue. In addition, the device has always struggled to gain public recognition from regulatory authorities regarding privacy and data compliance.

OpenAI

According to related investment data, top investment institutions such as Andreessen Horowitz, Bain Capital, and Kleiner Perkins had previously invested hundreds of millions of dollars in this startup. To address the current strategic adjustment, the HR team mentioned in the email that the company will further explain the future strategic direction and subsequent layoff arrangements at the company-wide meeting on Tuesday.

Digital Identity is Hard to Disrupt the Market

The original purpose of Tools for Humanity was to use iris scanning technology to generate unique digital identities, thereby proving that a person is a real human rather than an AI robot. Users can obtain a cryptocurrency called Worldcoin by scanning their eyes, which is issued by a foundation located in the Cayman Islands.

It is currently unclear about the exact number of layoffs, but the company's official website shows that the total number of employees exceeds 500. With OpenAI's push for an IPO, this once thriving hardware startup now faces severe challenges in commercialization and restructuring through layoffs.