AI company files for bankruptcy after being exposed as 700 human engineers

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The AI firm valued at $1.5 billion, which had received backing from Microsoft, has ceased operations. It was found that the ‘neural network’ it claimed to possess was actually a team of several hundred software engineers stationed in India.

Currently, there’s a lot of excitement surrounding artificial intelligence, particularly with businesses focusing on language-based models such as ChatGPT, Gemini, LLaMA, and others.

On the other hand, it’s been uncovered that one of these AI brands is nothing more than a deceitful scheme in a sensational scandal that’s spreading like wildfire across social platforms.

‘Based in London, the AI app-creating service known as Natasha from Builder.ai, asserted that it can leverage artificial intelligence to develop applications. Offering services ranging from designing apps to coding them, Natasha guarantees swift production of software, setting new speed records.’

It appears that the initial report suggesting Microsoft invested $455 million in ‘neural network’ technology, implying a value of $1.5 billion, was misleading. Upon closer examination, it seems that this substantial investment was actually directed towards employing over 700 Indian engineers, rather than developing an artificial intelligence system.

AI app-building company exposed as hundreds of human workers

From my gaming perspective, I’ve heard through the grapevine that the workforce at Builder.ai, as confirmed by Binance, predominantly consists of human workers. Some routine tasks are handled by standard software, but it’s mainly us, the humans, doing the heavy lifting.

The deception persisted for eight years before being unveiled in May 2025. Shortly following this revelation, the builder declared bankruptcy, using a LinkedIn post to express they would be initiating “insolvency proceedings.

Although our existing team has worked tirelessly and examined all potential solutions, the company’s struggle to bounce back from previous hardships and financial pressures stemming from past choices persists,” the company stated.

According to documents analyzed by Bloomberg, it was found that both Builder and VerSe, a social media company based in India, collaborated to inflate their sales figures from 2021 to 2024. They often billed each other for nearly identical amounts, which may have artificially boosted their reported sales during this period.

According to sources familiar with the matter, neither company appears to have provided any services in exchange for these payments, a claim that VerSe strongly disputes.

Umang Bedi, a co-founder at VerSe, told Bloomberg that our company doesn’t engage in artificially boosting income, dismissing the allegations as groundless and incorrect.

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2025-06-03 00:48