The fiasco of Builder.ai It leaves some interesting lessons. The traps of some companies to get rich by calling artificial intelligence What is notand the desire of the great technological ones to control everything that the word is carried, releasing a rain of millions without even investigating what is behind.
Builder.AI was valued at 1.5 billion dollars in 2023, after Microsoft Invested 455 million. Another of his investors was a sovereign fund of Qatar. This week has been declared in bankruptcy, after uncovering that Instead of AI used hundreds of Indian programmersin addition to other financial scams.
It is a phenomenon that is known as «IA washing«, where companies add the» made «or» with the AI »functions to their products, when in reality it is not so, because now everything that the word will carry in their name or description, attracts both customers and investors.
Thus Builder.AI worked, the company that cheated on Microsoft
According to the media in a report Bloombergwho has uncovered the entire scandal, Biulder.AI reached notoriety because it promised the creation of applications through AI, as who is going to buy from the supermarket.
The client chatted with the Natasha, who asked him some questions to know what kind of application he wanted. It could be customized to taste and, theoretically, an AI would be in charge of creating the app in a matter of hours.
What really happened is that this request was sent to India, where a legion of almost a thousand programmers and developers, located in Noida and Bangalore, manually encoded the application at full speed.
If developers needed to contact the client to clarify any questions, they had instructions for communicate through chat simulating the language of AIin addition to avoiding Indian expressions.
Besides, Bloomberg He has also uncovered an alleged exchange of invoices between Builder.AI and the company see for works that never carried out, to fatten their income from investors. In 2024 he declared income of 220 million dollars, when the real figure was 55 million.
Microsoft invested 455 million dollars with the intention of incorporating the «technology» of Builder.AI in its Azure cloud. Not only has the investment lost, but also the startup owes 30 million to use its cloud. And another 85 million to Amazon, for the same concept.
The magic of artificial intelligence has hypnotized everyone. Customers go into mass to hire a company just because they use AI, and investors release their money without verifying that what it offers is real. I hope everyone learns the lesson of the Buider.Ai Fiasco.
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Tags: Artificial, viral intelligence, Microsoft, curiosities, scam