A case study in exaggeration in artificial intelligence: Builder.ai

Once again, in May, Builder.ai, which was a high -character, has submitted a translation of the AI’s applications, at a request for bankruptcy in the United States, and its peak in an amazing fall has become a warning story in the madness of artificial intelligence today.

The deposit followed a wave of activity that the creditors have seized his accounts, and reveal that he might have been using engineers in India instead of artificial intelligence, and investigating how Builder.ai founded the money leading to its collapse.

The collapse anger among the construction investors. Investors, many of whom were amazed to know sales of the shares of the founder of the founder of Sachin Duggal in millions of dollars in the previous banks.

With the support of investors including Microsoft and the Investment Authority in Qatar, it raised more 500 million dollars It achieved the evaluation of the unicorn northern $ 1.3 billion.

How did you start to collapse?

According to Financial timesDuggal liquidated more than $ 20 million in personal holdings, with investors confirming that the company remained equal. These sales, which were implemented before the creditors seized Builder.ai accounts, feed questions about whether the founder has given personal wealth priorities over companies’ survival.

The well -informed ft said Duggal’s personality is isolated, along with his brand as Builder.ai “Chief Wizard”, from difficult interrogation to too late. The supervision of the Board of Directors left behind the company’s marketing strongly vision of artificial intelligence, even when internal audits showed moderate contradictions in its financial resources.

A return child was never

It was launched in 2016 under the name Engineer.AI, Builder.ai promise to enable companies to build custom programs with simple chat claims that, with their words, “easy like a pizza request”.

Investigations revealed that “AI” from Builder.ai was largely an interface for a wide network of human developers. The rest of the employees said that the artificial intelligence assistant “Natasha” has barely treated any functional coding.

In fact, around it 700 engineers in India They were lifting heavy. The Wall Street Journal noticed the truth of the company’s marketing, because customers expected automation, but instead they received a handcuff.

Financial delusions and your legal and legal

Financial audit revealed amazing variations: The company has reported $ 220 million in 2024 sales, But the reviews are linked The actual number is closer to $ 50 million, which is approximately 75 % of inflation. The allegations in which Builder.ai participated and the creation of the verse in India.round“The bills of each other to fabricate the revenue artificially. The verse denied violations.

Credit It seized 37 to 50 million dollars From Builder.ai Banking accounts, leaving the company a high cash runway. After that, the company entered insolvency procedures in June, which led to nearly 80 % of the workforce, about 1,000 jobs.

The repercussions were personal to employees. Nearly 80 percent of the construction. The 1,200 people’s workforce was demobilized in June, and many were receiving little service. Some employees in India Tell them that they felt “betrayal” After reassuring him months before the new financing of Microsoft and the investment authority in Qatar will secure their jobs.

Made wandering effects on the noise of artificial intelligence

Builder.ai’s collapse is the risk of “artificial intelligence washing”, as companies exaggerate or distort artificial intelligence capabilities to attract financing and tinnitus.

Industry analysts I am now referring to the high doubtsEven from the organizers, about projects that operate from artificial intelligence. For investors, the lesson was equally costly. Builder.ai Board of Directors included experienced executives and adventure companies that have pledged the Duggal vision to develop democratic applications.

Instead, the company’s collapse has become a case study in the failure of governance: investors are highly dependent on an attractive founder, the councils do not examine the enlarged financial statements, and global supporters are eager to buy in the mutation of artificial intelligence without demanding a demand for real technology.

What about its founder?

Note the correspondent feet This Duggal has moved since then to Dubai, where he removed himself from bankruptcy procedures in the United States, has lost his frustration among former colleagues and left investors to calculate the ruins of one of the prominent emerging games in Amnesty International.