OpenAI, the company behind ChatGPT, is reportedly seeking a $500 billion valuation through a secondary share sale for employees.
However, just as capital floods into AI, China is sounding the alarm over foreign firms collecting biometric data via cryptocurrency incentives, a not-so-veiled swipe at Worldcoin (WLD).
$500 Billion for AI, Iris Scans for Crypto: The Global Race to Monetize Minds
OpenAI’s planned $500 billion valuation would mark a 66% jump from its last $300 billion raise. Notably, the previous raise is already one of the largest private valuations in tech.
Like Coinbase, the company targets billions in share sales. It offers liquidity to employees and early backers while capitalizing on skyrocketing investor demand.
Last week, OpenAI reportedly secured $8.3 billion from investors for the second tranche of its recent $40 billion raise, led by SoftBank.
The offering was oversubscribed fivefold. Interest shows no signs of slowing as OpenAI expands into hardware via a $6.5 billion stock deal with Jony Ive’s AI device startup and prepares to release GPT-5.
However, while VCs race to buy in, global regulators watch warily, especially in Beijing.
China Warns of Iris Scans and Crypto-Driven Surveillance
China’s Ministry of State Security warned about systematically collecting iris data in exchange for cryptocurrency, citing national security threats.
While local media did not mention names, the description unmistakably refers to Worldcoin, now rebranded simply as World.
Worldcoin, backed by Tools for Humanity and Sam Altman, has long faced controversy for its proof-of-personhood system. This involves scanning users’ irises for token distributions.
The project claims its biometric onboarding ensures one-person-one-wallet fairness in crypto economies.
However, Chinese authorities allege it may also enable foreign influence and mass surveillance through blockchain-integrated identity systems.
The warning follows Kenya and Indonesia’s move to suspend Worldcoin’s operations due to “suspicious activity.” Additional reasons include broader concerns about how biometric data, once collected, might be used or exported.
This is another reminder for crypto-native users that decentralization does not equal immunity from real-world power struggles.
While OpenAI does not distribute tokens, its close ties to Worldcoin raise broader questions about AI, privacy, and the commodification of human identity. Sam Altman’s dual involvement in both projects fuels scrutiny.
OpenAI faces mounting pressure in the US regarding IP use and privacy standards. China, meanwhile, is doubling down on “data sovereignty” and warning that AI and crypto could be vectors for foreign control.
As OpenAI inches toward a half-trillion-dollar valuation, its ambitions are both exhilarating and unsettling.
Investors chasing the next tech mega-cycle would do well to weigh the regulatory headwinds coming from East and West.
Data on CoinGecko shows WLD was trading for $0.9391 as of this writing, down by 2.2% in the last 24 hours.
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Lockridge Okoth
https://beincrypto.com/openai-500-billion-china-warns-biometric-data/
2025-08-06 10:29:00
