On the surface, everything looks charming. A cute stuffed animal, floating peacefully on a duck float under a rainbow sky. But look below the waterline to see the true creature hiding—tentacles, bones, and an abyss of complexity.
This is precisely the image we created to illustrate an increasingly common reality in the generative AI market: behind colorful marketing and easy promises, many startups hide a structure that's far less technological than it appears.
The most recent case is that of Builder.ai , a London-based startup valued at US$1,5 billion, which promised to "create AI apps as if ordering pizza." The problem? The AI was, in practice, a screen for capturing briefings. The real code was written by 700 engineers in India.
Yes, 700.
The startup raised over US$450 million with the backing of giants like Microsoft and SoftBank. But an internal investigation revealed that the numbers were inflated, the technology was almost nonexistent, and even millions of dollars in debt to Amazon and Microsoft were left behind. Today, the company is on the verge of bankruptcy — and is being investigated for fraud in the US.
This episode is yet another example of the phenomenon known as "AI washing" —when companies sell solutions as if they were AI-based, but in practice operate with traditional or human processes disguised as technology.
Separating the hype from reality
Since mid-2023, at Flexa , we have invested heavily in preparing the market to understand what Generative Artificial Intelligence truly is . Our mission is simple: to ensure that leaders and organizations have a safe and hype-free space to learn, test, question, and build with AI — without the misleading glamour that has become fashionable.
We believe that trust in technology doesn't stem from narrative, but from clarity of purpose, technical transparency, and measurable business impact.
How to separate the wheat from the chaff?
Here are three points for those who want to avoid the traps:
- Be wary of solutions that promise magic without explaining the engineIf the AI “does everything on its own,” ask how. And ask to see it working.
- Ask about the technical team and the actual stack. Custom templates? Fine-tuning? Infrastructure? Without it, it's just PowerPoint.
- Measure real impact, not just marketingWhat is AI actually solving? Are there gains in productivity, revenue, or experience?
Generative AI is one of the greatest innovations of the century. But, like any revolution, it comes with opportunists and exaggerations.
Our recommendation: look below the waterline.
🧭 Want to talk about using AI responsibly, with impact and safety? We're open to it. Flexa Cloud is here to lead with transparency — and help you avoid being fooled by yet another scam.
