🤯 $1.5 billion AI scam that fooled Microsoft

A global community of 500,000 members mastering AI. Subscribe | Become a Partner ​Hi RSS!   This week was incredibly exciting as we were preparing for The Jagruk Fest, which is happening today - a real-world learning experience for teens on topics like AI, Finance, Startups, and Content Creation. For my session on AI, I'm planning something I've never done before and I'm nervous but thrilled at the same time! Lets hope it all goes as planned.   Now, here is what’s in store for this edition: A $1.5 billion AI scam that fooled everyone PwC report shows AI's massive impact on economic A comprehensive roundup of last week's AI news. Let’s go!  Last Week In AI   $1.5 Billion AI Scam that Fooled Everyone   London-based Builder.ai, once valued at $1.5 billion and backed by Microsoft and Qatar's sovereign wealth fund, filed for bankruptcy after revealing its "AI-powered" app development was mostly manual work by 700 Indian engineers. The startup raised over $445 million by falsely marketing an AI platform while human developers actually wrote the code.   Technical Context: The Human-AI Swap: 700 Indian engineers manually coded apps while presenting their work as AI-generated through fake assistant "Natasha." Financial Fraud: Founder inflated 2024 revenue by 300% - claiming $220 million when actual revenue was $50 million. Massive Collapse: Company owes $115 million to Amazon and Microsoft, with 1,000 job losses in the biggest AI startup failure since ChatGPT boom. Years of Lies: Former employees sued in 2019 calling it "smoke and mirrors," while the $1.5 billion Microsoft-backed startup deceived investors for years about non-existent AI technology. Why It Matters: Builder.ai's collapse exposes "AI washing" - rebranding traditional services as AI-powered for investment hype. This watershed moment could trigger stricter scrutiny of AI claims and cool the current investment frenzy.    Source: TOI   PwC Reports AI's Economic Boom   A new PwC analysis shows AI-exposed industries have experienced dramatic acceleration since ChatGPT's 2022 launch. Companies leveraging AI are seeing revenue growth nearly quadruple, while wage premiums for AI skills have more than doubled from last year. The study examined both augmentable jobs (where AI enhances human judgment) and automatable jobs (where AI can complete tasks autonomously). Technical Context: Revenue Explosion: AI-exposed industries show 3x higher revenue per employee growth, with overall revenue growth nearly quadrupling since 2022. AI Skills Premium: Workers with AI skills command a 56% wage premium, up from 25% last year, with every analyzed industry paying premiums for AI expertise. Skills Revolution: Job requirements in AI-exposed roles changed 66% faster than other jobs - 2.5x faster than just last year. Automation Fears Misplaced: Even workers in highly automatable roles are seeing wage increases in AI-exposed industries, contradicting concerns about AI devaluing jobs Why It Matters: This data demolishes fears that AI primarily destroys jobs and wages. Instead, it's creating a new economic reality where AI literacy becomes the ultimate career differentiator. Workers without AI skills risk being left behind in an economy increasingly divided between AI-powered high earners and everyone else.   Source: pwc News Anthropic introduces custom AI for national security 🌐 [Link] X updates terms to block AI training with content 🚫 [Link] Sundar Pichai addresses AI job concerns in interview 🎤 [Link] Genspark launches AI Secretary for task management 🗂️ [Link] Grok enhances Tasks feature with UI updates 🎨 [Link]  Gemini's Canvas allows for advanced project visualizations 📈 [Link] Mistral Code launches for JetBrains and VS Code users 💻[Link] Eleven v3 model enhances emotional speech generation 🎶 [Link] Gemini 2.5 Pro enhances coding and reasoning skills 🧠 [Link] IndiaAI partners with OpenAI for nationwide academy launch 🎓 [Link]   Thanks for reading! Explore more of my work below whenever you're ready   StoryOwl: My AI tool that helps make custom storybooks with your kid as the main character. APE Community: Join 2,000 AI Powered Entrepreneurs (APEs) on a journey to 10X their business. AI Consultant: I advise & build AI POCs for 100+ member companies - transforming marketing, sales & operations in just 4-8 weeks. I’ll ensure you stay ahead in your life and career by leveraging AI.  It’s a promise!  Your AI Companion & Guide, Nivedan! I'm Nivedan Rathi, an IIT Bombay alumnus and ex-founding member of several tech & AI startups. I started Future & AI with LLA - India’s #1 Finance Influencer (8M+ Subs). I’m on a mission to help 1 Million people master the future with AI, and not be afraid of it. Learn more here..   Unsubscribe here