Beyond Galgotias. AI scams riding the hype. story and Humans Pretend to be AI Bots!

Today we're diving into two jaw-dropping fraud stories shaking the AI world. From fake apps to pilfered robot dogs, these tales expose how scammers are cashing in on AI's gold rush. Buckle up – hype rules, but reality bites back.


First up: the unicorn that wasn't. Back in early June 2025, London-based Builder.ai – once hailed as a $1.5 billion darling – imploded into bankruptcy. Founded by Sachin Dev Duggal, this startup promised to build custom apps "as easily as ordering a pizza" with their revolutionary AI assistant, Natasha.

They reeled in over $450 million from heavyweights like Microsoft, SoftBank, and Qatar's Investment Authority. Investors salivated over the pitch: AI magic turning ideas into code overnight.

But here's the twist – it was all smoke and mirrors. Reports revealed that behind Natasha's chatty facade, about 700 engineers in India were manually coding everything, pretending to be bots. No AI revolution, just good old human sweatshops.

The fallout? Builder.ai had inflated 2024 revenue by 300% – claiming $220 million when it was really around $50 million. Lenders like Viola Credit swooped in, seizing $37 million from their accounts. Layoffs hit hard, investigations into "round-tripping" sales scams launched, and the term "AI washing" – exaggerating AI capabilities for profit – became their ugly legacy.

Builder.ai didn't build the future; they built a house of cards.

Now, fast-forward to India's marquee AI Impact Summit in Delhi. Galgotias University struts in, proudly showing off their "homegrown" robodog innovation. Crowd goes wild – until online sleuths zoom in.

That sleek quadruped? A dead ringer for Unitree's Go2 model, a Chinese bot you can snag for just Rs 2-3 lakh. Chinese media called it out: "Indian university passes off our Unitree Go2 as their own at the AI Summit."

Social media erupted. Memes, outrage, calls for accountability. The government didn't hesitate – they ordered Galgotias to vacate the expo. What started as a flex turned into a national embarrassment, proving even at top-tier events, copy-paste beats create. 


Alex: Builder.ai and Galgotias: two sides of the same scam coin in AI's opaque, hype-fueled arena. Scamsters thrive where buzz drowns out scrutiny. Stay skeptical, folks – question the pizza apps and robot pups. That's AI Unmasked. Drop a like, subscribe, and tell me: what's the next AI grift? See you next time.

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