Builder.ai, a London-based startup once valued at $1.5 billion and backed by major investors including Microsoft and Qatar’s sovereign wealth fund, has filed for bankruptcy following revelations that its purported AI-powered platform was largely operated by approximately 700 human engineers based in India. The company had marketed itself as an AI-driven app development solution, but investigations uncovered that tasks were manually executed by engineers posing as artificial intelligence, leading to significant regulatory scrutiny.
This disclosure has raised serious concerns about transparency and ethical practices within the tech industry, particularly among companies claiming to utilize advanced AI technologies. The incident underscores the need for greater oversight and accountability to ensure that technological innovations are genuinely as advertised.
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This disclosure has raised serious concerns about transparency and ethical practices within the tech industry, particularly among companies claiming to utilize advanced AI technologies. The incident underscores the need for greater oversight and accountability to ensure that technological innovations are genuinely as advertised.
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Behind bankruptcy plea of London start-up: It hired 700 Indian engineers to pose as AI tools
A major AI scandal has shaken the tech world as Builder.ai, once valued at $1.5 billion, has filed for bankruptcy. The company, backed by Microsoft and a Qatari sovereign fund, falsely claimed to build apps in minutes using AI, while actually relying on hundreds of human engineers in India.

How this billion-dollar London startup backed by Microsoft made 700 engineers sitting in India pose as AI | - The Times of India
Tech News : Builder.ai, once valued at $1.5 billion and backed by tech giants, has filed for bankruptcy after being exposed for misleading investors about its AI
