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AI company files for bankruptcy after being exposed as 700 Indian engineers
An ambitious company that claimed to make apps using AI has been exposed as hundreds of human workers based in India.
Microsoft reportedly backed the ‘neural network’ with a$455 million investment, leading to a valuation of $1.5 billion… but it turns out all that cash was going toward a workforce of over 700 Indian engineers, rather than an AI. “Despite the tireless efforts of our current team and exploring every possible option, the business has been unable to recover from historic challenges and past decisions that placed significant strain on its financial position,” the company wrote. LinkedIn: builder.aiDocuments reviewed by Bloomberg showed that Builder also worked with VerSe, an India-based social media startup, to falsely increase its sales numbers, regularly billing each other for similar amounts between 2021 – 2024.
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