Sam Altman warns total AI automation is dangerous as his identity startup lays off staff
Sam Altman said AI should not be used to automate everything, arguing that a world built that way would be both “unfulfilling” and “dangerous.” He made the comments as OpenAI begins what he describes as a new phase focused on abundance, safety and broader human judgment, according to Business Insider.
In the interview reported by Business Insider, Altman and OpenAI researcher Jakub Pachocki said the rise of AI will make roles that rely on human judgment more important, not less. Their comments reflect a broader shift in how OpenAI is publicly framing AI: less as a tool to replace people across the board and more as a system that should expand capability while preserving oversight.
Altman’s warning also comes at a moment when his companies are under pressure to show that AI-adjacent products can become durable businesses. TechCrunch reported that Tools for Humanity, the identity verification company Altman co-founded, is laying off staff after struggling to prove that its iris-scanning Orb can generate revenue and satisfy regulators. Business Insider similarly reported that the company, which has a valuation of about $2.5 billion, has had difficulty showing a clear path to profitability despite millions of sign-ups.
Tools for Humanity was built around the idea of using iris scans to prove that a person is human in an era of rapidly improving AI, but the business has faced persistent questions about privacy, regulation and adoption. According to Business Insider, the company told employees it was making changes to some roles and teams, and it planned to discuss its next steps in a town hall. The company did not immediately say how many workers would be affected.
The layoff news adds an ironic backdrop to Altman’s broader message about automation. His Orb startup is trying to position itself as a way to preserve trust in digital identity, while OpenAI is moving toward a larger commercial strategy that Altman says should emphasize safety and collaboration rather than indiscriminate automation.
Altman has also been laying out his vision for OpenAI’s next stage, which Business Insider described as a “third phase” centered on abundance, safety and global cooperation as the company prepares for a possible IPO. Together, the remarks and the layoffs suggest a common theme across Altman’s ventures: AI may transform work and identity, but the business and social systems around it are still being tested.