Builder.ai goes bankrupt, revealing the phenomenon of pseudo-AI

The British startup Builder.ai has officially announced bankruptcy due to management issues, becoming a typical case of a so-called “pseudo-AI” company. Once valued at nearly $1 billion and having received support from Microsoft and Amazon, Builder.ai’s “AI-driven” application development actually relied heavily on low-cost human labor. Although the company had claimed to use artificial intelligence technology to automatically generate applications, many former employees revealed that its development mainly depended on manual work, leading to frequent customer complaints. The company is now struggling to repay debts to Amazon and Microsoft, reflecting the real challenges in the application of AI technology.