A $1.5 billion AI company backed by Microsoft has shuttered after its ‘neural network’ was discovered to actually be hundreds of computer engineers based in India.
Natasha,’ an AI app-building service from London-based Builder.ai, claimed it had the ability to use artificial intelligence to create applications. From coming up with app designs to writing code, Natasha promised to pump out programs in record time.
Microsoft reportedly backed the ‘neural network’ with a $455 million investment, leading to a valuation of $1.5 billion… but it turns out all that cash was going toward a workforce of over 700 Indian engineers, rather than an AI.
As reported by Binance, employees said the majority of labor at Builder.ai was produced by humans, with some clerical work being done using general software.
See! AI did create jobs after all!
That must have been one big trenchcoat.
Like…
a) wouldn’t it be cheaper to actually build AI rather than pay 700 employees?
b) what was the long term plan? The funding still has to keep paying for employees, right?
c) can’t people tell that it takes hours or days/weeks for the “AI” to finish a project?
AI companies earn money from investors not customers.
It probably wouldn’t be cheaper, and certainly not if one of your requirements is that the code actually work.
AI companies are all operating on the idea that they can get the technology to work in the way that they need before they run out of funding and/or customers. In reality ther are virtually no legitimate uses for it as it currently exists, or will exist in the near future, so these companies are trying to keep up appearances by lying. Either they lie about their use of AI, or they lie about how reliable or effective their AI is, and they count on their sales teams and investors to keep the lights on despite that
