The CEO of software-building company ‘Builder.io’ is doing damage control after another AI-focused business with a nearly identical name was exposed as hundreds of workers based in India.
In May 2025, ambitious AI-powered app-building company ‘Builder.ai’ was discovered not to be using artificial intelligence to make custom programs for clients, but relying on the skills of around 700 human engineers, instead.
The news went viral and the business, previously valued at $1.5B, went bankrupt — but now, another company completely unrelated to the scandal is getting heat for it.
Builder.io offers somewhat similar services as Builder.ai, providing custom software created in part by AI-powered tools and visual editors. It doesn’t help that they have extremely similar names, as well… but only one of them was reportedly running a scheme.
Builder.ai, previously valued at over $1B, declared bankruptcy after it was discovered to be using the skills of around 700 human engineers instead of AI.
Builder.io rushes to clear its name amid Builder.ai scandal
It seems that folks have been confusing the two corporations, and it’s not hard to see why, given their coincidental similarities.
The CEO and co-founder of Builder.io, Steve Sewell, has been rushing to social media to clear his brand’s name, posting a humorous statement about the situation on his LinkedIn profile.
“FOR THE LAST TIME GUYS, THIS IS A DIFFERENT COMPANY,” Sewell wrote alongside a screenshot of a news article covering the Builder.ai scandal.
“Was*,” he added in a comment, poking fun at the rival business’s bankruptcy.
LinkedIn: Steve SewellDespite the confusion, Sewell’s colleagues predict that this could actually be good PR for Builder.io, which actually uses AI to help build programs rather than disguising their human employees as flashy new tech.
“I was talking about this with folks in the MACH Alliance – joking that once the dust clears, you will probably be the most pleased with this outcome,” one commented. “Maybe you can buy the domain cheap.”
Others, however, are urging Sewell to change the brand’s name, with one writing: “You need a rebrand, my friend.”
“Honestly, at this point, they need to change their brand,” another said on X.
“Wow, that sucks for them… or does it? Any publicity is good publicity,” yet another mused.
Not only was Builder.ai exposed for using human workers instead of AI, but Bloomberg reviewed financial documents showing that it was working with a social media startup to falsely pad its sales figures.
While the startup has vehemently refuted these findings, it seems the damage has already been done as the once billion-dollar business has now totally collapsed.
Content shared from www.dexerto.com.