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Sam Altman Negotiates Worldcoin (WLD) x OpenAI Partnership Despite Regulatory Concerns

Last Updated April 29, 2024 4:55 PM
Eddie Mitchell
Last Updated April 29, 2024 4:55 PM
Key Takeaways
  • Worldcoin is planning to increase its WLD token supply by 36 million over the next six months.
  • A number of investigations into Worldcoin’s data collection practices are ongoing.
  • Several formal complaints are now alleging that ChatGPT violates multiple GDPR laws.

Sam Altman’s OpenAI is reportedly in talks to partner with his universal basic income and identity-centric crypto venture, Worldcoin (WLD).

Despite regulatory scrutiny of Worldcoin’s data collection and handling practices, this partnership could set the stage for major developments at the intersection of artificial intelligence (AI), cryptocurrencies, and blockchain technology.

World’s Combine

As per a Bloomberg report, Sam Altman’s OpenAI and Tools For Humanity’s Worldcoin, are entering into negotiations for a partnership that could see OpenAI providing tools and solutions to Worldcoin.

Though details are sparse as to what this partnership could yield, it is expected that OpenAI’s world-leading technology could provide major upgrades and enhancements to Worldcoin’s data processing and verification processes and overall operations.,

Optimistically, the potential collaboration could be extremely promising for AI and crypto technologies going forward. The news comes as both projects remain under scrutiny from governments, regulators, and privacy groups around the world.

CCN reached out to Tools For Humanity who did not immediately respond to a request for comment.

Worldcoin Scrutiny

Tools for Humanity has previously faced probes in Germany, Argentina, and Hong Kong, with outright bans coming from Portugal, Spain, and Kenya in recent months. Regulators have taken Worldcoin over data privacy concerns, which stem from its data collection and handling methods.

In order to obtain a blockchain-based identity known as a World ID, as well as some free WLD tokens, users are required to submit facial and retina scans using its Orb scanner. These images are then, supposedly, securely and cryptographically converted into a World ID before having the scans deleted.

However, regulators in Argentina have argued that the contracts Worldcoin users are required to sign violate consumer protection laws. Regulators in Spain and Portugal have also alleged that children are submitting eye scans, which Worldcoin denies, amongst other allegations.

An Unsuitable Matchup

Most recently, a Vienna-based non-profit group, Noyb, has levied a privacy complaint  against OpenAI’s popular bot, ChatGPT, alleging that its inability to provide correct information on individuals is a breach of General Data Protection Regulation (GDPR) laws.

As per the complaint, the chatbot violates GDPR on privacy and accuracy of information, as well as the right to correct inaccurate information. It also argues that the AI firm refuses to correct or delete incorrect responses, nor will it disclose information on the data.

Data protection lawyer at Noyb, Maartje de Graaf writes :

“If a system cannot produce accurate and transparent results, it cannot be used to generate data about individuals. The technology has to follow the legal requirements, not the other way around.”

In many other instances, the merging of a major crypto project and a world-leading AI firm would have been bullish news for the crypto market. However with Sam Altman residing as the figurehead for both firms and the overall disdain some governments have toward Worldcoin’s data practices, governments and consumers may observe developments with a cynical eye.

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