A London-based startup that once raised $445 million by claiming to revolutionize app development through artificial intelligence has now collapsed after it was revealed that its so-called AI was actually 700 human engineers working behind the scenes in India. Builder.ai, which counted Microsoft among its high-profile backers, had marketed itself as a no-code platform powered by an AI assistant named “Natasha,” said to build software effortlessly, much like assembling Lego bricks. However, it turned out that Natasha was not an algorithm but a large team of people manually handling tasks, raising serious questions about transparency and trust.
The company’s downfall began when its creditor, Viola Credit, which had lent Builder.ai $50 million in 2023, seized $37 million from its accounts after the startup defaulted on payments. This financial trouble triggered formal insolvency proceedings in the UK, with a court-appointed administrator now tasked with exploring ways to recover assets and potentially salvage parts of the business.
The story of Builder.ai is a cautionary tale about the fine line between innovation and misrepresentation, and it highlights the pressures startups face to deliver breakthrough technologies to investors and the public. While the investors and the tech world were captivated by the promise of AI-driven development, the reality of extensive human involvement was kept under wraps until the financial collapse brought it to light.
Many sympathize with the thousands of engineers involved, who worked tirelessly yet remained largely invisible behind the façade of AI technology. Their efforts, though overshadowed by controversy, speak to the human labor that still underpins many technological promises. This episode underscores the importance of honesty in tech innovation and serves as a reminder that behind every “intelligent” machine, there are often real people working hard to make it function.
