AI Startup's $200 Million Lie: 700 Engineers, No AI, and a Broken Promise

A Spanish startup, Builder.ai, recently declared bankruptcy after it was revealed that its advertised AI assistant, 'Natasha,' was not an AI at all, but a front for 700 human engineers in India. This deception, uncovered by former employees, involved significantly inflating the company's revenue figures to attract investors. "The company claimed Natasha generated over $200 million in annual revenue, while in reality, it barely reached $50 million," stated a former executive. This case highlights the risks of unchecked hype in the tech industry and the importance of transparency.