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Microsoft-Backed “AI” Was Actually 700 Indian Workers
- Written by Kiara Fabbri Former Tech News Writer
- Fact-Checked by Sarah Frazier Former Content Manager
A London artificial intelligence startup valued at $1.5 billion filed for bankruptcy because its “AI” services were actually operated by 700 human engineers in India.
In a rush? Here are the quick facts:
- Microsoft-backed Builder.ai promised AI-driven app creation via Natasha platform.
- Most Builder.ai tasks were manual, not AI-powered.
- Builder.io faced backlash due to name confusion with Builder.ai.
The London-based startup Builder.ai received backing from Microsoft and other major investors to market its platform, Natasha, which promised to create apps through artificial intelligence capabilities—starting from design all the way to coding.
A Binance report revealed that most labor at Builder.ai involved human work, while some clerical tasks were performed through general software.
😃 The Natasha neural network turned out to be 700 Indian programmers The startup BuilderAI offered to write any application, like in a constructor, by selecting the necessary functions. In reality, customer requests were sent to the Indian office, where 700 Indians wrote code… pic.twitter.com/lYWipf63cp — Bernhard Engelbrecht (@BernhardEngel_) May 29, 2025
The scandal came to light in May 2025, ending an eight-year run. Dexerto reports that the company wrote in a statement on LinkedIn: “Despite the tireless efforts of our current team and exploring every possible option, the business has been unable to recover from historic challenges and past decisions that placed significant strain on its financial position.”
Builder.ai also faces serious allegations of financial misconduct. Bloomberg reported that it faked transactions with Indian tech firm VerSe Innovation to inflate its revenue—a practice known as “round-tripping.” Documents showed both companies billed each other for similar amounts between 2021 and 2024, often without providing services.
VerSe has strongly denied the claims. “We’re not the kind of company that is in the business of inflating revenues,” co-founder Umang Bedi told Bloomberg, calling the accusations “baseless and false.”
Builder.ai’s downfall highlights the risks of the current AI investment boom, where startups promise revolutionary products but sometimes rely on smoke and mirrors.
Dexerto notes that U.S. prosecutors have subpoenaed Builder.ai’s financial documents, and the company has admitted to some discrepancies in its past sales reports.
Photo by Shubham Dhage on Unsplash.
Neuralink Secures $650 Million In Series E Funding Round
- Written by Andrea Miliani Former Tech News Expert
- Fact-Checked by Sarah Frazier Former Content Manager
Neuralink announced on Monday that it has closed a $650 million Series E funding round. With this new investment, Elon Musk’s company plans to expand patient access and develop more advanced devices.
In a rush? Here are the quick facts:
- Neuralink raised $650 million in a Series E funding round.
- The fundraising included investors such as Sequoia Capital, Thrive Capital, G42, and ARK Invest.
- With the new investment, the company expects to reach more patients and develop more advanced devices.
According to the Neuralink’s announcement , the funding round included the participation of key investors such as Sequoia Capital, Thrive Capital, G42, ARK Invest, and DFJ Growth.
“We’re excited to announce our $650M Series E fundraising,” wrote the company in a post on the social media platform X. “We’re building technology to transform people’s lives: helping restore autonomy to those with motor, speech, or vision impairment by enabling them to control computers and robotic arms with their minds, output verbal thought as text, and generate visual perception.”
Neuralink explained that it aims to develop advanced technologies to enhance the connection between biological and artificial intelligence.
“This funding helps us bring our technology to more people—restoring independence for those with unmet medical needs and pushing the boundaries of what’s possible with brain interfaces,” states the document.
According to TechCrunch , in 2023, Neuralink raised $280 million in a Series D round, followed by an additional $43 million a few months later, funding that helped the company achieve several milestones.
Neuralink stated that its notable achievements since 2023 include treating multiple patients with severe paralysis—who are now using the company’s chips to control digital and physical devices—, launching clinical trials in multiple countries, developing new applications such as the CONVOY initiative, and getting the FDA Breakthrough Device Designation .
The company has also been developing its brain studies to expand its chip interactions with neural connections, as well as with more regions of the brain.
Last year, Neuralink showcased multiple success cases as well as challenges encountered. During a livestream on Musk’s social media platform X, a quadriplegic patient played chess controlling his moves with his brain. After a second implant, another patient was able to design 3D objects with computer-aided design (CAD) and play video games. The company also acknowledged mechanical problems with its brain chip implants, as several threads of the brain implant had retracted from the patient’s brain.
