The CEO of software-building firm ‘Builder.io’ is doing injury management after one other AI-focused enterprise with an almost equivalent identify was uncovered as a whole bunch of employees based mostly in India.
In Could 2025, bold AI-powered app-building firm ‘Builder.ai’ was found to not be utilizing synthetic intelligence to make customized packages for purchasers, however counting on the abilities of round 700 human engineers, as a substitute.
The information went viral and the enterprise, beforehand valued at $1.5B, went bankrupt — however now, one other firm utterly unrelated to the scandal is getting warmth for it.
Builder.io presents considerably comparable companies as Builder.ai, offering customized software program created partially by AI-powered instruments and visible editors. It doesn’t assist that they’ve extraordinarily comparable names, as effectively… however solely one in all them was reportedly working a scheme.
Builder.io rushes to clear its identify amid Builder.ai scandal
It appears that evidently people have been complicated the 2 companies, and it’s not arduous to see why, given their coincidental similarities.
The CEO and co-founder of Builder.io, Steve Sewell, has been speeding to social media to clear his model’s identify, posting a humorous assertion in regards to the scenario on his LinkedIn profile.
“FOR THE LAST TIME GUYS, THIS IS A DIFFERENT COMPANY,” Sewell wrote alongside a screenshot of a information article masking the Builder.ai scandal.
“Was*,” he added in a remark, poking enjoyable on the rival enterprise’s chapter.
LinkedIn: Steve Sewell
Regardless of the confusion, Sewell’s colleagues predict that this might truly be good PR for Builder.io, which truly makes use of AI to assist construct packages slightly than disguising their human workers as flashy new tech.
“I used to be speaking about this with people within the MACH Alliance – joking that when the mud clears, you’ll in all probability be essentially the most happy with this consequence,” one commented. “Possibly you should purchase the area low-cost.”
Others, nonetheless, are urging Sewell to vary the model’s identify, with one writing: “You want a rebrand, my buddy.”
“Truthfully, at this level, they should change their model,” one other mentioned on X.
“Wow, that sucks for them… or does it? Any publicity is sweet publicity,” one more mused.
Not solely was Builder.ai uncovered for utilizing human employees as a substitute of AI, however Bloomberg reviewed monetary paperwork exhibiting that it was working with a social media startup to falsely pad its gross sales figures.
Whereas the startup has vehemently refuted these findings, it appears the injury has already been achieved because the as soon as billion-dollar enterprise has now completely collapsed.
