Builder.io faces PR challenge after Builder.ai human worker scandal

Builder.io deals with public confusion and reputation risks after Builder.ai’s bankruptcy exposed use of engineers.

In May 2025, Builder.ai, an AI-powered app-building company, was exposed for relying not on artificial intelligence but on about 700 human engineers to create custom programs. This revelation caused the once $1.5 billion-valued company to declare bankruptcy and sparked a major scandal in the tech industry.

Meanwhile, Builder.io, an entirely separate software company offering AI-assisted custom software and visual editors, found itself caught in the fallout due to the similarity of its name. Many confused Builder.io with the disgraced Builder.ai, leading to a wave of negative attention and calls for rebranding.

Builder.io’s CEO and co-founder, Steve Sewell, has taken to social media to clarify the misunderstanding. On LinkedIn, he posted a humorous message stressing that Builder.io is a different company and genuinely uses AI technology in its software development. “For the last time, guys, this is a different company,” Sewell wrote alongside a news article about the Builder.ai scandal.

Industry insiders suggest this confusion might ultimately benefit Builder.io by highlighting its legitimate AI-driven approach, unlike Builder.ai’s deceptive practices. One MACH Alliance member commented that once the dust settles, Builder.io could emerge positively, possibly even acquiring the similar domain name at a discount.

Despite this, some voices urge Builder.io to consider rebranding to avoid future confusion. Social media users debated the merits of a name change, reflecting the ongoing challenges of similar company branding in the crowded AI market.

Further damaging Builder.ai’s reputation, Bloomberg reports indicated that the company also allegedly inflated sales figures with a social media startup’s help—a claim Builder.ai denies. Regardless, the fallout has been severe, leading to the collapse of a once-prominent business.

This episode underscores the need for transparency in AI claims and highlights how brand identity can be critical in the tech landscape.