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Thursday, July 3, 2025
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Fake AI: 700 India Engineers Behind It, Microsoft Invested $455M in Fake AI Company

A recent revelation has sent shockwaves through the tech community, as it was uncovered that Builder.ai, a London-based AI startup once valued at $1.5 billion and backed by Microsoft, has filed for bankruptcy. Investigations revealed that the company falsely marketed its app-building services as AI-powered, when in reality, most of the work was performed manually by a team of 700 engineers based in India.

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The Unveiling of the Truth

The company’s so-called AI assistant, “Natasha,” was largely a façade. Audits showed that Builder.ai had engaged in financial misconduct, inflating its revenue figures through “round-tripping” with VerSe Innovation. While the company claimed $220 million in sales for 2024, audits revealed the actual figure was only $50 million. This scandal has reignited concerns over the hype surrounding AI and the need for transparency in the tech startup ecosystem.

Community Reactions

The comments section has been filled with a variety of reactions, showcasing a mix of humor and disbelief:

  • User 1 humorously noted that “Indian taking over AI jobs” is a reality.
  • User 2 quipped about the absurdity of having an actual person inside a vending machine, highlighting the irony of the situation.
  • User 3 expressed skepticism about whether their questions to AI were actually answered by humans, reflecting a growing distrust in AI technology.
  • User 4 made a light-hearted comment about the situation being reminiscent of a scene from the HBO show “Silicon Valley,” where similar themes of deception were explored.

The Bigger Picture

This incident raises significant questions about the integrity of tech startups and the promises they make regarding AI capabilities. Many users expressed concerns about the implications of such practices on the broader tech industry. User 6 remarked that the investigation was triggered when the AI began asking users to “send bobs and vagene,” a humorous take on the absurdity of the situation.

The fallout from this scandal serves as a reminder of the importance of transparency and accountability in the tech sector. As the industry continues to evolve, it is crucial for companies to uphold ethical standards and deliver on their promises to consumers.

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Conclusion

The Builder.ai scandal highlights the ongoing challenges and complexities within the tech startup ecosystem, particularly regarding the marketing of AI technologies. As discussions continue, it is clear that maintaining trust and integrity is essential for the future of innovation in this rapidly changing landscape.

#AI #TechScandal #BuilderAI #Transparency #CommunityReactions #SiliconValley

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