5 min read

🛎️Is It Real?

Builder.ai's Faked AI: From Unicorn Dreams to Bankruptcy Nightmares

Good Morning, AI Enthusiasts!

It’s a brave new world, where you can no longer tell if that person on the other end of the line is a friendly customer service rep or an AI using a human voice?


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QUICK HITS

  • OpenAI reports that many recent misuses of ChatGPT likely originated from China, highlighting security challenges in AI technology.
  • The Trump administration focuses on voluntary AI standards instead of regulations.
  • Anthropic co-founder on cutting access to Windsurf: ‘It would be odd for us to sell Claude to OpenAI’
  • Anysphere's AI coding assistant Cursor has achieved a $9.9 billion valuation after raising $900 million, surpassing $500 million in annual revenue.
  • Anthropic has launched new Claude Gov AI models designed for classified government environments, focusing on national security.

SERVICE

A New AI Agent Makes Machines Unrecognizable from Humans

The collaboration between Phonely, Maitai, and Groq has introduced AI agents that are so adept at mimicking human communication that customers can no longer discern whether they are interacting with a machine or a human.

  • Phonely, Maitai, and Groq have tackled the latency issue in conversational AI, achieving 99.2% accuracy and sub-second response times, allowing for seamless human-like interactions.
  • This new AI agents show a significant increase in accuracy from 81.5% to 99.2%, surpassing previous benchmarks. Response times have improved by over 70%, and the system can handle 30,000 requests per minute, leading to a reported 63% reduction in operational costs for businesses.
  • Phonely customers report they can no longer tell whether they are being served by humans or AI

Phonely plans to expand AI capabilities beyond phone support, hinting at future developments in email correspondence and live chat. Their partnership showcases a model for future collaborations in AI, pushing the limits of technology.


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STARTUP

Builder.ai's Faked AI: From Unicorn Dreams to Bankruptcy Nightmares

Once upon a time, a startup named Builder.ai promised to revolutionize software development. Its bold claim? To make app creation as simple as ordering pizza. With a sprinkle of artificial intelligence (AI) and a dash of investor enthusiasm, Builder.ai quickly became the darling of the no-code/low-code development world.

  • Founded in 2016 by Sachin Dev Duggal and Saurabh Dhoot, Builder.ai aimed to democratize app development, allowing users to create applications simply by choosing features from a menu, aided by an AI virtual assistant named Natasha.
  • Between 2018 and 2023, Builder.ai attracted $445 million in venture capital, achieving unicorn status with a valuation of $1.3–$1.5 billion, boasting rapid growth and expansion across five countries, while its products were praised as transformative.
  • Signs of distress surfaced in late 2024 as financial projections fell short. The company's cash reserves dwindled, leading to a change in leadership and culminating in bankruptcy by May 2025 after a major lender seized funds.
  • Builder.ai was recently revealed by several media outlets to rely more on human labor than actual AI technology. This revelation raised doubts about the company’s AI capabilities and contributed to its rapid decline towards bankruptcy.

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