London-based Builder.ai, once valued at $1.5 billion and backed by Microsoft, has shockingly filed for bankruptcy after revelations showed its “AI-driven” software development was actually being performed by 700 human engineers in India.
Builder.ai's supposed AI assistant “Natasha” was marketed as a revolutionary tool that could automatically create apps. But internal documents and whistleblower reports revealed Natasha was little more than a scripted chatbot interface—while real humans did the heavy lifting.
To make matters worse, Builder.ai allegedly inflated revenues through a shell partnership with VerSe Innovation, falsely claiming $220 million in 2024 sales, when in reality the figure was closer to $50 million, according to auditors.
The scandal has sparked broader concern about how startups are overhyping AI capabilities to attract funding and valuation—without delivering actual automation.
This collapse serves as a wake-up call for investors and regulators to demand more transparency in the AI space and verify whether “artificial intelligence” claims are genuinely backed by technology—or just a human-powered illusion.
#AIHype #BuilderAI #StartupScandal #TechFraud #AIvsHumans #NatashaScam #TransparencyInTech #Microsoft #FakeAILondon-based Builder.ai, once valued at $1.5 billion and backed by Microsoft, has shockingly filed for bankruptcy after revelations showed its “AI-driven” software development was actually being performed by 700 human engineers in India.
Builder.ai's supposed AI assistant “Natasha” was marketed as a revolutionary tool that could automatically create apps. But internal documents and whistleblower reports revealed Natasha was little more than a scripted chatbot interface—while real humans did the heavy lifting.
To make matters worse, Builder.ai allegedly inflated revenues through a shell partnership with VerSe Innovation, falsely claiming $220 million in 2024 sales, when in reality the figure was closer to $50 million, according to auditors.
The scandal has sparked broader concern about how startups are overhyping AI capabilities to attract funding and valuation—without delivering actual automation.
This collapse serves as a wake-up call for investors and regulators to demand more transparency in the AI space and verify whether “artificial intelligence” claims are genuinely backed by technology—or just a human-powered illusion.
#AIHype #BuilderAI #StartupScandal #TechFraud #AIvsHumans #NatashaScam #TransparencyInTech #Microsoft #FakeAI
