The Greatest AI Scam in History
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The Greatest AI Scam in History
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This episode uncovers the rise and fall of Builder.ai, formerly known as Engineer.ai - a company that positioned itself as an AI-driven app development platform. Despite marketing claims, most of the development work was carried out by outsourced human engineers, not artificial intelligence. The company allegedly engaged in fraudulent accounting practices, including round-trip billing, to inflate its revenues. Backed by major investors like SoftBank and Microsoft, Builder.ai eventually crumbled amid financial irregularities, lawsuits, money laundering allegations, mass layoffs, and the resignation of its CEO. This exposé sheds light on the broader issue of AI-washing in the tech industry and the critical need for skepticism when evaluating bold AI claims.