Live data from Hacker News

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

ibtimes.co.uk

181–190 of 283 posts

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

#181

So.. where did the $450M go? A team of 700 developers in India built over eight years would have cost a fraction of that.

They have been operating since 2016. Companies can and have burned through $450M in funding a hell of a lot faster than that.

OpenAI is on track to spend $14 billion this year.

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

#182

Earlier quoted context omitted.

This is so obviously fake news that it's a good litmus test of the people who are boosting it. There's no way that a team of programmers can ever produce code quickly enough to mimic anything close to the response time of a coding LLM.

But it’s not just about coding quickly but also correctly. Coding LLMs do not solve the problem of it hallucinating, using antiquated libraries and technologies and screwing up large code bases because of the limited context size. Given a well architected component library and set of modules I would bet that on average I could build a correct website faster.

I did a bit of research…

Builder.ai didn't tell investors they were competing with GitHub Copilot, Cody, or CodeWhisperer. Those are code assistants for developers. They told investors they were building a virtual assistant for customers. This assistant was meant to "talk" to clients, gather requirements and automate parts of the build process. Very different space.

And like I said in another comment, creating a dedicated, pre-trained foundation model is expensive. Not to mention a full LLM.

Questions:

1. Did Craig Saunders, the VP of AI (and ex-Amazon), ever show investors or clients any working demo of Natasha? Or a product roadmap?

2. Was there a technical team behind Saunders capable of building such a model?

3. Was the goal really to build a domain-specific foundation model, or was that just a narrative to attract investment?

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

#183

Earlier quoted context omitted.

Yep. Also happened with Amazon's "Just Walk Out Technology:" https://www.businessinsider.com/amazons-just-walk-out-actual...

[Disclaimer: Former Amazon employee and not involved with Go since 2016.] I worked on the first iteration of Amazon Go in 2015/16 and can provide some context on the human oversight aspects. The system incorporated human review in two primary capacities: 1. Low-confidence event resolution: A subset of customer interactions resulted in low-confidence classifications that were routed to human reviewers for verification…

That's some fascinating background, thanks! Probably explains why they keep operating it in stadiums but not grocery stores. Works pretty well with a small handful of items, does not scale up reliably to shopping carts full of stuff.

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

#184

Earlier quoted context omitted.

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

How are they grifters? Tesla gave us FSD to try for free for a month, twice now. If you don't like its performance, don't pay.

You the customer are only a minor part of the grift. In fact, you're an unwitting prop for the grift. The entire point of the grift is the stock price, not your $8,000 or monthly subscription.

What they want from you are comments like this. What they want to do with those comments is to preserve the consensus amongst Tesla bulls that they are on their way to selling robots and renting robot taxis by the ride.

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

#185
post #182

Earlier quoted context omitted.

But it’s not just about coding quickly but also correctly. Coding LLMs do not solve the problem of it hallucinating, using antiquated libraries and technologies and screwing up large code bases because of the limited context size. Given a well architected component library and set of modules I would bet that on average I could build a correct website faster.

I did a bit of research… Builder.ai didn't tell investors they were competing with GitHub Copilot, Cody, or CodeWhisperer. Those are code assistants for developers. They told investors they were building a virtual assistant for customers. This assistant was meant to "talk" to clients, gather requirements and automate parts of the build process. Very different space. And like I said in another comment, creating a dedi…

> creating a dedicated, pre-trained foundation model is expensive. Not to mention a full LLM.

Creating a dedicated pretrained model is a prerequisite of any LLM. What do you mean by "full LLM"?

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

#186
post #15

Beaten to death: https://hn.algolia.com/?q=Builder.ai

This looks like the first submission to get traction on this latest development. Thanks for the search though: > https://news.ycombinator.com/item?id=30397201 This one from 3 yrs ago had some interesting comments > off topic, but they have a very suspect pricing page: https://www.builder.ai/studio-store > "Delivery: 12 weeks" > is Builder.ai just a CRUD app for indian sweatshops to build the apps? > > It would not ha…

You need to sort by Date, there was this one just 10 days ago: https://news.ycombinator.com/item?id=44080640

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

#187
post #161

Earlier quoted context omitted.

This is fake news. Builder.ai, like any other dev shop, had clients and was building apps using developers in India, pretty much like Infosys or any other Indian dev shop. Nothing wrong with that. From what I read online, the real issue was "Natasha", their virtual assistant powered by a dedicated foundation model. They ran out of money before it got anywhere.

> This is fake news. Builder.ai, like any other dev shop, had clients and was building apps using developers in India, pretty much like Infosys or any other Indian dev shop. Nothing wrong with that. Yeeeah... that's a fairly disingenuous take. The difference between every other offshore dev shop backed by developers in India and Builder.ai is that - and I say this as someone who thinks Infosys is a shit company - Inf…

I don't agree. Even Infosys markets AI as part of their offering, just look at their "AI for Infrastructure" pitch:

https://www.infosys.com/services/cloud-cobalt/offerings/ai-i...

Every big dev shop does this. Overselling tech happens all the time in this space. The line between marketing and misleading isn't always so clear. The difference is Builder.ai pushed the AI angle harder, but that doesn't make it Theranos-level fraud.

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

#188
post #156

Earlier quoted context omitted.

How do you figure? $450M / 8 years / 700 developers = $80k / year per developer.

Typically, scams like this are very top-heavy with the vast majority of the pilfered cash going to a few well-placed "bros" at the top of the company pyramid. My guess? Most of the cash is socked away in BTC or some such wealth sink just waiting for the individuals to clear their bothersome legal issues.

> My guess? Most of the cash is socked away in BTC

Had they done this years ago they would be so rich it would be worthy keep builder.ai going just to avoid legal problems.

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

#189
post #182

Earlier quoted context omitted.

I did a bit of research… Builder.ai didn't tell investors they were competing with GitHub Copilot, Cody, or CodeWhisperer. Those are code assistants for developers. They told investors they were building a virtual assistant for customers. This assistant was meant to "talk" to clients, gather requirements and automate parts of the build process. Very different space. And like I said in another comment, creating a dedi…

> creating a dedicated, pre-trained foundation model is expensive. Not to mention a full LLM. Creating a dedicated pretrained model is a prerequisite of any LLM. What do you mean by "full LLM"?

Just to clarify: I said "pre-trained foundation model".

LLMs are a type of foundation model, but not all foundation models are LLMs. What Builder.ai was building with Natasha sounded more like a domain-specific assistant, not a general-purpose LLM.

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

#190
post #180

> Less than two months ago, Builder.ai admitted to revising down core sales numbers and engaging auditors to inspect its financials for the past two years. This came amidst concerns from former employees who suggested sales performance had been inflated during prior investor briefings. I was hoping for something interesting, but it is just plain old fashioned accounting fraud.

[deleted]
Post reply on HN