The leader of software development firm ‘Builder.io‘ is taking steps to repair their reputation following the revelation that another AI-centric company with a similar name, employing approximately hundreds of people in India, has been unmasked.
By May 2025, it was uncovered that Builder.ai, a highly driven AI-labeled application development company, had been primarily utilizing the expertise of approximately 700 human engineers rather than artificial intelligence to create custom programs for their clients.
Initially, a piece of news spread rapidly, causing a business worth $1.5 billion to file for bankruptcy. However, now an entirely different company, not involved in the scandal, is facing criticism instead.
Builder.io provides comparable services to Builder.ai, offering tailored software solutions that utilize AI-driven tools and user-friendly visual editors. Unfortunately, their names are strikingly alike, but it’s important to note that there have been reports suggesting one of them operated under suspicious circumstances.
Builder.io rushes to clear its name amid Builder.ai scandal
It appears that people often mix up these two companies due to their striking resemblances by chance.
It seems there’s a tendency for people to confuse the two businesses because of their accidental similarities.
Stepping onto various social media platforms, Builder.io’s CEO and co-founder, Steve Sewell, has been actively addressing misconceptions regarding his company by humorously commenting on the situation via his LinkedIn page.
Lastly, I’d like to clarify, this is an entirely separate organization, as demonstrated in the attached article about Builder.ai. – Sewell
OR
To make it clear once and for all, this is not the same company as Builder.ai, as shown in the linked news article. – Sewell
“Was*,” he added in a comment, poking fun at the rival business’s bankruptcy.
Regardless of the misunderstanding, Sewell’s peers believe that this situation might unexpectedly serve as positive public relations for Builder.io. This platform, in fact, leverages AI instead of masking its human workforce as cutting-edge technology to create programs.
As I was chatting it up with fellow gamers in the MACH Alliance, I cracked a joke about how, when the chaos settles, I’d likely be the one grinning ear to ear with satisfaction over this outcome. One of them chimed in, suggesting that perhaps I could snag the domain at a bargain price afterwards.
Some individuals, on the other hand, are encouraging Sewell to modify the company’s name, with one person suggesting: “It’s time for a rebrand, buddy.
“Honestly, at this point, they need to change their brand,” another said on X.
jsut gotta educate the market!
— Trung Phan (@TrungTPhan) June 2, 2025
“Wow, that sucks for them… or does it? Any publicity is good publicity,” yet another mused.
It turns out that not only was Builder.ai found to be employing real people instead of artificial intelligence, but Bloomberg’s analysis of their financial records revealed a deceptive practice: they were collaborating with a social media company to inflate their sales statistics.
Despite the startup strongly denying these allegations, it appears that the harm has already been inflicted, as the company that was once valued at a billion dollars no longer exists.
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2025-06-03 20:48