Startup CEO Suspected After” Artificial” Turns Out to Be Humans in the Philippines

A tech founder who raised more than$ 40 million to launch a cutting-edge AI shopping app was accused of fraud in the United States after it emerged that the AI behind the app was a call center in the Philippines.

Albert Saniger, 35, the founder and former CEO of “nate,” is accused of misleading investors by claiming that the agency’s e-commerce app used specialized AI to manage online payments. &nbsp,

Acting U.S. Attorney for the Southern District of New York, Matthew Podolsky, said,” Albert Saniger misled shareholders by exploiting the claim and beauty of AI technology to create a fake narrative about technology that always existed.“

This deception” not only deceives honest investors, but it also devalues genuine startups, makes investors dubious of real breakthroughs, and finally impedes the development of AI.”

Nate, which was introduced in 2018, advertised as a “universal buying van,” giving users a single-tap checkout experience on any e-commerce site. &nbsp,

Saniger disclosed to investors that NATE’s technology was quickly and easily replace in shipping details, desired sizes, and entire purchases.

For instance, if a customer found a pair of sneakers online, they may start the Nike application, click “buy,” and the application claimed to handle the rest, including entering the length, payment and shipping information, and closing the transaction using AI.

However, it didn’t work, and the” AI” couldn’t handle most transactions, much like Elizabeth Holmes ‘ Theranos blood testing devices. &nbsp,

Instead, nick slowly turned to humans and established a call center with Filipino workers to imitate the technology that users believed was taking place behind the scenes.

One count of wire fraud and one count of securities scams, both of which carry a maximum sentence of 20 years, has been brought against Saniger. A similar legal lawsuit has been filed by the U.S. Securities and Exchange Commission. &nbsp,

Decrypt sent a request for comment to nate’s click message, but it was rejected.

edited by Sebastian Sinclair