Fintech founder charged with fraud after ‘AI’ shopping app found to be powered by humans in the Philippines
SMRTR summary
Albert Saniger, founder of AI shopping app Nate, faces fraud charges for allegedly misleading investors about the company's AI capabilities. The Department of Justice claims Nate used human contractors in the Philippines for purchases, despite raising over $50 million by promising AI automation. The app's actual automation rate was reportedly 0%, contradicting Saniger's claims. Nate sold its assets in January 2023, underscoring concerns about startups overstating their AI capabilities.
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