AI unicorn Builder.ai goes bankrupt! Despite impressive investments from Microsoft, Amazon, and others, they used outsourced engineers to fake "automatically write apps".

AI unicorn Builder.ai broke out a financial black hole, raised $500 million and collapsed overnight, the so-called "making an app is like pizza" cowhide finally blew through, behind the effort is to outsource Indian engineers. (Synopsis: Zerebro late founder Jeffy Yu is still selling tokens? KOL question: fake death to evade fraud responsibility) (Background supplement: Huang Jenxun rejects blockchain? The official website of Nvidia Inception explicitly excludes applications for "crypto startups") British AI unicorn Builder.ai, once praised in the sky, claimed to allow passers-by to develop apps "as simple as ordering pizza", and successfully attracted more than $500 million, many financial owners such as Microsoft (Microsoft), Amazon and Qatar's sovereign wealth fund. Who knew that the scenery was momentary, but now it is shocking that it is ready to pack and go bankrupt, and the former unicorn has become a dead horse, shocking the technology investment circle. According to a Financial Times article, Builder.ai tearfully informed employees earlier this week that they were ready to go home and eat themselves, and the fuse was that the temporary accounts submitted by the company made the financial owners (lenders) almost didn't have a stroke after reading it. The gorgeous revenue estimates in the accounts were found to be like pouring water into the Pacific Ocean, and the financial owners were angry on the spot, directly announcing that Builder.ai was in default and seizing all its cash. Well, if there is no money, the company can only go bankrupt. The company, once hailed as a rising star in the field of artificial intelligence, has fallen with astonishing speed. What's even more difficult is that Builder.ai claims to allow users to easily use AI to build their own apps, but in fact there is no automatic development at all, and the products are all using cheap outsourcing Indian engineers to complete the so-called "AI development", and the revenue is naturally self-defeating. The digital magic of the "Chief Wizard"? How big is this cowhide? The data speaks, and this time it's a ghost story. Builder.ai previously estimated 2024 revenue, from $220 million (USD), to only $55 million, a full three-quarters of the evaporation. To make matters worse, the "real" total sales for 2023 have also been revised from the previously claimed $180 million to just about $45 million. With this kind of correction, it's no wonder that the money owners want to turn their faces. According to people familiar with the matter, these earth-shattering figures were presented to the board of directors under former CEO Sachin Dev Duggal. Even more ironically, although Mr. Duggal and former Chief Revenue Officer Varghese Cherian have patted their asses and left, Duggal has retained his board seat and been named a blind-sounding "Chief Wizard"(Chief Wizard) Honorary title, is his magic is to change the revenue figures? Internal accounts are full of doubts: the "coordinated fraud" of the Middle East gold flow? There are many ghosts on the night walk, and the problem of bad debts in Builder.ai has long been not news. According to rumors, before the former CEO Duggal left, the company was already full of bad debts, so many bad debts that the board of directors could not stand it, so they had to ask a law firm to have a financial physical examination. I don't know if I don't check, I'm shocked when I check it! Two insiders who had seen the report were shocked, and the investigation found possible evidence that pointed to someone within the company: "Signs of concerted efforts to exaggerate Builder.ai revenues" The report specifically named some dealers in the Middle East, suspecting that they were not really selling products at all, but colluded to help with performance, filling in the numbers several times. In the face of these allegations, a loan syndicate of companies such as Viola Credit, Atempo Growth and Cadma Capital Partners, which only lent $50 million to the Builder.ai in October last year, looked at the financial report at the beginning of this year and found that the company was an empty shell in the midst of failure, making money that was 108,000 miles different from the pie that was originally painted, of course, quickly seizing cash and sending it on the road. AI financing cash-out: put on pants and talk again Builder.ai Although this financial appearance record is a traditional accounting and watering terrier, it also sounded a wake-up call to the hot AI industry. In recent years, AI has developed rapidly, but some demons and monsters have also begun to emerge, for example, everyone has begun to worry about whether AI models will lie, and even engage in algorithmic price manipulation. Although Builder.ai's problem is not directly related to the moral hazard of these advanced AI technologies, it is a bloody reminder to the world that no matter how cool the technology is, the basic skills of a company's products and financial health are the life-saving charms of new creations. Looking back at the many cases of financial fraud of Chinese listed companies, or the management of financing companies hotly discussed by Taiwan's legislators, technology startups may have fewer such scandals, just simply taking advantage of the wind, crazy bragging to attract funds, but the lessons of Builder.ai show that in addition to high-level financing, financial transparency and internal control are the last word. Otherwise, no matter how high the pig on the vent flies, without pants, it will be ugly to fall down. Related reports A hacking incident, unexpectedly unveiling the absurd inside story of the EigenLayer team Warren Buffett partner: Bitcoin is ridiculous, the public should stay away from it like the plague Deep "DNA of US tariffs: history will not repeat itself, but will copy "AI Unicorn Builder.ai bankruptcy! Microsoft, Amazon and other bright investments, but use outsourcing engineers to fake "automatic writing apps" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".