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The Missing AI In Builder.ai: How Microsoft Backed Unicorn Blew $450 Mn
- Builder.ai, formerly Engineer.ai, has faced insolvency proceedings amid allegations of faking AI tech and revenue inflation.
- Accusations include using human workers instead of AI in their platform and inflating revenue to attract investors.
- The company's relationship with DailyHunt owner VerSe Innovations has been scrutinized, leading to corporate governance issues.
- Builder.ai's downfall was attributed to weak internal controls despite raising significant funds from investors like Microsoft.
- The company misreported revenue and faced debt issues, with lenders seizing funds and causing mass layoffs.
- Builder.ai's use of AI has been questioned, with claims that it heavily relied on human workers and misrepresented its technology capabilities.
- Allegations of revenue inflation, roundtripping funds, and billing practices have surfaced, impacting the company's credibility.
- Facing bankruptcy, liquidators may auction assets to settle debts owed to vendors, lenders, and investors, including Microsoft and Jungle Ventures.
- Employee layoffs, an ongoing ED probe against the former CEO, and impending dissolution signal a grim future for Builder.ai.
- The company's collapse serves as a cautionary tale about the pitfalls of the AI hype and its repercussions on the India AI ecosystem.
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