Builder.ai was actually 700 Indians not AI

Builder.ai, a London-based AI startup once valued at $1.5 billion and backed by Microsoft, has filed for bankruptcy after being exposed for falsely marketing its app-building services as AI-powered.

Investigations revealed that the company’s touted AI assistant, “Natasha,” was largely a façade—most of the work was done manually by 700 engineers based in India. Additionally, Builder.ai engaged in financial misconduct through “round-tripping” with VerSe Innovation to inflate its revenue figures.

The company claimed $220 million in 2024 sales, but audits showed only $50 million. The scandal has reignited concerns over AI hype and transparency in the tech startup ecosystem.

Source: CNBC

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