Builder.ai, the $1.5B AI Unicorn, Collapses: A Human-Powered Illusion
2025-06-03
Builder.ai, once valued at $1.5 billion, has filed for bankruptcy. The purported AI-powered platform, which attracted investments from Microsoft and the Qatar Investment Authority, totaling over $450 million, was revealed to be a facade. Instead of AI automation, a team of 700 Indian developers were manually coding applications. The company's downfall followed a key lender withdrawing funds, exposing years of inflated sales figures and misleading marketing. This spectacular failure raises critical questions about transparency, accountability, and the ethical implications of AI marketing in the tech industry.
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tech scandal