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Builder.ai Collapses: $1.5B 'AI' Startup Exposed as 'Indians'?

ibtimes.co.uk

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Re: Builder.ai Collapses: $1.5B 'AI' Startup Exposed as 'Indians'?

#21

Post by mjmsmith »

klipt wrote: post #11
immibis wrote: post #8

Earlier quoted context omitted.

Almost like it doesn't work as well as they market it as working?

Not all companies are equal. At the same time that Tesla was making actual electric cars, Nikola was rolling fake "electric trucks" downhill. Grifters exist, but not everyone is a grifter.

Not sure Tesla is the poster child for non-grifters in the context of AI.

Re: Builder.ai Collapses: $1.5B 'AI' Startup Exposed as 'Indians'?

#23

Post by petesergeant »

mountainriver wrote: post #2

Do folks think that this was utter negligence by the VCs, or just a pump and dump?

I dunno, there's a world where this ends differently, and the company was liquid for six more months and transitioned to "actual" AI instead, having already built the customer base and sales channels, and everyone's happy. Launching your AI product before the AI works appears not to be especially unusual and is only a problem if the money runs out before you finish building the AI.

Re: Builder.ai Collapses: $1.5B 'AI' Startup Exposed as 'Indians'?

#24

Post by wongarsu »

Ancalagon wrote: post #3

Really weird considering how much AI is actually available now

If you have an idea for a cool AI startup it's faster to build your first prototype without the actual AI, just faking that part. But if your Actual Indians had 95% accuracy and you can't get an AI to do more than 85% then you are kind of stuck if you raised money and got customers pretending that your Actual Indians are Artificial Intelligence.

Re: Builder.ai Collapses: $1.5B 'AI' Startup Exposed as 'Indians'?

#26

Post by flowerthoughts »

mountainriver wrote: post #2

Do folks think that this was utter negligence by the VCs, or just a pump and dump?

There's a more-or-less useful adage in investing: scared money don't make money.

Startups will always carry a risk, and VCs are not betting that the company will be asymptotically good, just good enough to make an exit.

Re: Builder.ai Collapses: $1.5B 'AI' Startup Exposed as 'Indians'?

#27

Post by sib »

Supermancho wrote: post #20
klipt wrote: post #11

Earlier quoted context omitted.

Not all companies are equal. At the same time that Tesla was making actual electric cars, Nikola was rolling fake "electric trucks" downhill. Grifters exist, but not everyone is a grifter.

Capitalism rewards dishonesty. Every company is a grifter to some degree. This is more widespread in technical service companies.

It's a wonderful thing that no other economic systems reward dishonesty.

/s

Re: Builder.ai Collapses: $1.5B 'AI' Startup Exposed as 'Indians'?

#29

Post by mrweasel »

Ancalagon wrote: post #3

Really weird considering how much AI is actually available now

Also it can't have been fast. Didn't customers and investors feel that it was weird that CoPilot spits out code as fast as you can type, but Builder.ai needs days or weeks to generate your app. Or where these Indian developers just really really fast?

Re: Builder.ai Collapses: $1.5B 'AI' Startup Exposed as 'Indians'?

#30

Post by deadeye »

Supermancho wrote: post #20
klipt wrote: post #11

Earlier quoted context omitted.

Not all companies are equal. At the same time that Tesla was making actual electric cars, Nikola was rolling fake "electric trucks" downhill. Grifters exist, but not everyone is a grifter.

Capitalism rewards dishonesty. Every company is a grifter to some degree. This is more widespread in technical service companies.

To an extent. Just not to the extent that dishonesty is rewarded in socialism and communism.

At least Capitalism in a free society is largely self correcting.

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