Worldcoin, OpenAI to partner regardless of regulatory difficulties

As per the information provided by Bloomberg, OpenAI is currently in discussion for a potential partnership with Worldcoin, with this being able to lead to significant synergies and offer AI solutions to the cryptocurrency and identity verification company. Worldcoin, which scans individuals’ irises to provide them with a digital identity and crypto tokens, faced several regulatory challenges and data privacy concerns as it works towards increasing its user base. These included investigators searching six of the startup's orb verification locations in Hong Kong, as well as probes in Germany and Argentina, and a ban in Kenya.

In addition, Portugal regulators ordered Worldcoin to halt the collection of biometric data for 90 days, as it raised privacy concerns in multiple countries. CNPD’s, Portugal’s data regulator, decision was based on the increased risk presented to citizens and customers’ data, with the authority interfering to prevent serious harm. Additionally, the company was banned in Portugal, Kenya, and Spain from the beginning of the year until March 2024. Also, Worldcoin’s token is not currently available to market participants in the US due to regulatory unease.

Tools of Humanity, the company behind Worldcoin, is currently working on collaborating with participants in tech and finance, with the company previously partnering with Okta on an authentication service. Even if officials from the company suggested a potential alliance with OpenAI, they did not provide further examples on the matter, as detailed by Bloomberg. At the time of the announcement, representatives from OpenAI did not respond to requests for comment. In addition, considering that both companies are co-founded by Sam Altman and his position in the firms, any collaboration between OpenAI and Worldcoin would be subject to governmental oversight.

Moreover, Tools for Humanity intends to introduce a layer-2 blockchain called World Chain, as well as upgrade its orb, including providing it in several colours and introducing the product to more locations globally. When it comes to its crypto operations, Worldcoin aims to expand the supply of tokens over the upcoming months as part of a sell-off to chosen institutions. This move follows the increase in the token’s popularity, at least in terms of distribution, as, despite having between 300 and 500 orb locations, the company is experiencing a scarcity.

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