Nate, founded in 2018, raised over $50 million in funding. Operating from the domain Name.tech, the company secured a $38 million Series A round led by Renegade Partners, with support from investors like Coatue and Forerunner Ventures.
Nate claimed its app allowed users to make purchases from any e-commerce site with a single click using AI. However, the DOJ’s Southern District of New York alleges that, in reality, Nate depended heavily on hundreds of human contractors located in a Philippines call center who manually processed those purchases!
Nate’s former CEO and founder, Albert Saniger, was charged with making false claims and faces serious jail time. The FBI Assistant Director in Charge Christopher G. Raia said:
“Albert Saniger allegedly defrauded investors with fabrications of his company’s purported artificial intelligence capabilities while covertly employing personnel to satisfy the illusion of technological automation. Saniger allegedly abused the integrity associated with his former position as the CEO to perpetuate a scheme filled with smoke and mirrors. The FBI will continue to investigate any business owner who withholds material information to encourage additional investments.”
It seems that AI is not as smart as we believed it would be! If you have any “Nate” domains now it’s a good time to drop them.
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