Microsoft-Backed $1.5 Billion AI Startup “Builder.ai” Collapses After Unveiling Indian Engineers’ Role in AI Responses

Sure thing! Let me dive into this and shake it up a bit. Here goes:

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So, here’s the thing, right? AI is like this crazy-fast-moving train—or maybe it’s more like one of those bullet trains—in tech. Everyone’s talking about it. But, you know, some folks are waving red flags, like, “Hey, slow down a second!” That’s where Builder.ai comes in.

I mean, tons of cash are thrown into AI, like, all the time. Companies like NVIDIA turned that into a jackpot, reaching over $3 trillion. Trillion! Like, I can’t even wrap my head around that number. Meanwhile, some people are hustling venture capitalists, selling them what they say is “AI magic.” And then there’s Builder.ai. It supposedly offers this automated app-making thing, but here’s the kicker—not exactly what it seems.

So, Builder.ai had something they called Natasha. Fancy name, right? They said it could do app design and coding with barely any humans involved. Microsoft poured $445 million into this—big bucks—because, supposedly, it meant fewer humans were needed. But joke’s on them, ’cause the reality was kind of mind-blowing.

I literally laughed out loud when I found out: They had, like, 700 programmers in India doing the heavy lifting! An “AI coder”? More like a lot of real people writing actual code. And here they were, promoting Natasha as the future of coding. But nope, behind the curtain, it was like The Wizard of Oz, all manual labor.

And about those US and UK authorities? They’re sniffing around, saying, “What’s going on here?” Builder.ai’s now in hot water, and the company declared bankruptcy. Ouch. AI? Not just smoke and mirrors, but this whole story gives off major “hype train gone wrong” vibes.

Anyway, does this mean AI is just one big lie? Nah, not really. But Builder.ai’s tale is like one of those wild reality checks. Even Microsoft’s backing couldn’t save something built on half-truths and wishful thinking. So, next time you hear about a too-good-to-be-true AI, maybe—just maybe—take a moment to peek behind the scenes.