Core Viewpoint - The article discusses the bankruptcy of Builder.ai, a prominent AI startup, highlighting the discrepancies between its claimed capabilities and actual operations, which involved significant human labor rather than AI technology [1][10]. Group 1: Company Background - Builder.ai was founded in 2016 by Sachin Dev Duggal, aiming to simplify software development through a low-code/no-code platform [4][6]. - The company gained significant attention and investment, achieving a valuation of $1.5 billion (approximately 10.8 billion RMB) and raising a total of $450 million [8][12]. Group 2: Investment Journey - Builder.ai's early funding included a $29.5 million Series A round led by SoftBank's DeepCore in 2018, marking one of the largest Series A rounds in Europe at the time [7]. - Subsequent funding rounds included a $100 million Series C round in 2022 and a $250 million Series D round in May 2023, with participation from major investors like Microsoft and Qatar Investment Authority [8][12]. Group 3: Unraveling the Truth - Reports indicated that Builder.ai's operations were largely dependent on human programmers rather than AI, contradicting its marketing claims [10][11]. - An audit revealed that Builder.ai had significantly overstated its revenue, claiming $220 million for 2024 when the actual figure was only $55 million, leading to a financial crisis [12][13]. Group 4: Consequences and Bankruptcy - Following the revelation of financial discrepancies, Builder.ai's founder was ousted, and the company attempted to secure additional funding, but it was too late [12][13]. - Ultimately, Builder.ai filed for bankruptcy, with debts exceeding $100 million owed to major companies like Amazon and Microsoft [13][14]. Group 5: Broader Implications - The article reflects on the broader implications for investors, particularly highlighting the risks associated with the "fear of missing out" (FOMO) in the AI investment landscape [17][18]. - It emphasizes the need for caution and due diligence in evaluating the true capabilities of tech startups, as not all high-profile companies can sustain their valuations or operational claims [18].