Fake Startup AI Builder Collapses After $450 Million Scam

Builder.ai was once hailed as a rising AI star but has now collapsed miserably, exposing a "magic trick" where 700 people typed keys pretending to be artificial intelligence.

Builder.ai has received a total investment of 450 million USD from Microsoft and SoftBank.

The company advertises “AI project management” but it is actually just real people doing it.

Revenue was inflated 3 times, still owed Amazon Web Services up to 75 million USD.

In just a few months, Builder's valuation plummeted from $1.5 billion to zero.

Founding CEO Sachin Duggal steps down after allegations of fraud and shady finances.

The collapse has prompted comparisons to “fake AI” startups like Nate and GameOn.

Many experts warn that the AI ​​bubble could lead to more scams.

Builder is currently under investigation in the US, while Duggal has turned to “AI expert”.

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Source: https://khoahocdoisong.vn/startup-gia-ai-builder-sup-do-sau-cu-lua-450-trieu-usd-post2149050086.html