Matters Arising ... AI Startup Scam

Builder.ai, once an AI darling with $250M+ from Microsoft, SoftBank & co, just collapsed. Turns out, there was no AI—just underpaid devs doing sloppy work. Complaints piled up, projects failed, and revenue figures were inflated 5x. A partner bank’s audit exposed the rot. From Reddit to whistleblowers, it’s looking like a massive scam. Is this the first pop in the AI bubble?

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