'700 Indian engineers posed as AI': The London startup that took Microsoft for a ride

A London-based startup, which had garnered significant attention and investment by promising to revolutionize app development through artificial intelligence, has come crashing down. The company, which managed to raise an impressive $445 million, was found to have misled investors and clients by employing 700 Indian engineers to pose as AI systems, rather than utilizing genuine AI technology as claimed. The revelation has sent shockwaves through the tech industry, highlighting vulnerabilities in the due diligence processes of major corporations, including Microsoft, which had been one of the startup's high-profile clients. The incident underscores the growing challenge of distinguishing between genuine AI innovations and deceptive practices in a rapidly evolving field. Investors are now grappling with the aftermath, as the startup's collapse raises questions about the legitimacy of other AI ventures in the market. As the dust settles, industry experts are calling for stricter scrutiny and more robust verification processes to prevent similar occurrences in the future. The incident serves as a cautionary tale about the perils of overhyping AI capabilities and the importance of transparency in tech development. Meanwhile, affected parties are assessing the financial and reputational damage, while the engineers involved face an uncertain future amidst the fallout.

— Authored by Next24 Live