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How this billion-dollar London startup backed by Microsoft made 700 engineers sitting in India pose as AI
Tech News : Builder.ai, once valued at $1.5 billion, has filed for bankruptcy after being exposed for misleading investors about its AI capabilities. The company,
London-based Builder.ai, once valued at $1.5 billion and backed by Microsoft and Qatar's sovereign wealth fund, has filed for bankruptcy after reports that its "AI-powered" app development platform was actually operated by Indian engineers, said to be around 700 of them, pretending to be artificial intelligence.The startup, which raised over $445 million from investors including Microsoft and the Qatar Investment Authority, promised to make software development "as easy as ordering pizza" through its AI assistant "Natasha." As early as 2019, The Wall Street Journal exposed Builder.ai's questionable AI claims, revealing that the platform relied heavily on human contractors rather than artificial intelligence. US prosecutors in New York have since demanded the company's financial statements and customer lists as part of a federal investigation.Builder.ai's collapse represents the largest AI startup failure since ChatGPT's launch triggered a global investment frenzy.
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