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...