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Builder.ai, a once high-flying artificial intelligence startup based in London, allegedly engaged in a years-long scheme to inflate its revenue by exchanging matching invoices with Dailyhunt-owner VerSe Innovation, according to a report by Bloomberg.

Documents reviewed by Bloomberg and people familiar with the matter suggest that between 2021 and 2024, the two firms routinely billed each other for similar amounts without providing actual services, a practice known as “round-tripping.” The transactions reportedly helped Builder.ai present an inflated financial picture to investors.

During the four-year period in question, Builder.ai reportedly recorded close to $60 million in revenue from VerSe for services such as application development. Simultaneously, the AI firm made payments to VerSe and its subsidiary, Quark Media Tech, ostensibly for marketing services. The timing and amounts of the invoices were varied, according to sources, but the net result was a nearly even financial exchange.

VerSe co-founder Umang Bedi denied the allegations, calling them “baseless and false,” and said the company did not record or pay for services it did not receive. VerSe also owns the short-video platform Josh. 

Bedi, who previously served as Facebook’s managing director for India and South Asia, confirmed that VerSe began working with Builder.ai around 2021. However, he rejected any implication of collusion or non-delivery of services. “There is no correlation in the timing of any payments,” he said.

Once valued at $1.5 billion, Builder.ai filed for bankruptcy earlier this month after a creditor seized most of its cash. U.S. prosecutors have subpoenaed the company for financial records amid ongoing scrutiny. The founder and former CEO of Builder.ai is Sachin Dev Duggal. He stepped down as CEO in February 2025 but retained his position as "Chief Wizard" and remained on the board. 

Builder.ai raised over $450 million from investors including Microsoft, Insight Partners and the Qatar Investment Authority. Microsoft and QIA, which also backed VerSe, declined to comment to Bloomberg.

Auditor Deloitte, in VerSe’s most recent financial report, flagged weaknesses in the company’s internal controls, though it signed off on the accounts, as per the report. The company, which owns the popular apps Dailyhunt and Josh, is said to be exploring an IPO.

The full details were first reported by Bloomberg.

Builder.ai accused of faking millions in sales through Dailyhunt-owner VerSe dealings

Meta’s photo and video-sharing platform Instagram is broadening its visual format capabilities, allowing users to post single images in a 3:4 aspect ratio, an update that aligns more closely with the default photo settings on most smartphone cameras.

The update was announced via Instagram’s official broadcast channel and later detailed by Adam Mosseri, head of Instagram, on the company’s Threads platform. “From now on, if you upload a 3:4 image, it’ll now appear just exactly as you shot it,” Mosseri wrote, noting the change offers users more flexibility in how their photos are displayed.

Previously, Instagram limited vertical images to a 4:5 aspect ratio, slightly trimming images taller than the platform’s supported formats. While users could also post in the traditional square 1:1 format or a 5:4 ratio, images that did not conform required cropping or adjustment.

The update marks a subtle but significant shift in Instagram’s longstanding approach to visual formatting—one that reflects evolving user expectations and a desire for more seamless content sharing.

In a separate update, the platform also introduced a new experimental feature called “Blend,” which curates a shared feed of recommended Reels between users through direct messaging. The feature is currently available on an invite-only basis and is limited to iOS and Android devices.

“Blend” leverages user activity and preferences to surface content tailored to individual tastes, signaling Meta’s ongoing push to personalize content discovery across its suite of social apps.



Instagram expands photo format options, adds new reel discovery feature

India's digital economy is undergoing a transformative shift, driven by the increasing volume of digital data and a heightened awareness of individual privacy rights. The landmark Supreme Court ruling in 2017, which recognized privacy as a fundamental right, set the stage for a new era of data protection. This culminated in the Digital Personal Data Protection Act (DPDPA) of 2023, followed by the draft Digital Personal Data Protection Rules issued in January 2025, offering crucial operational guidance, notes Atul Gupta, Partner and Head of Digital Trust and Cyber Security Services, KPMG in India.

Beyond mere compliance, data privacy has emerged as a strategic cornerstone for global businesses. It's about building and maintaining trust, safeguarding reputation, and fostering innovation in an increasingly data-driven world, particularly with the rapid adoption of technologies like Artificial Intelligence (AI). The DPDPA, much like its global counterparts, carries significant weight, with non-compliance potentially leading to substantial fines, reportedly up to INR 250 crores, alongside severe reputational damage, according to Gupta.

Unpacking the DPDP Draft Rules: Key Areas of Focus

The recently published draft rules are designed to strengthen India's data protection framework. While their effectiveness hinges on the swift establishment and operation of the Data Protection Board, they offer clarity in several critical areas:

Personal Data Breach Notification: The rules provide detailed guidelines for informing authorities and data principals about breaches, including specific timelines and required information. A layered approach is emphasized, with immediate notification followed by a comprehensive report within 72 hours.

Consent Management: A core tenet of the rules is active consent management. This includes detailed provisions on language for privacy notices, content requirements, and communication channels. Mechanisms for consent withdrawal and the establishment of a consent management entity are also highlighted. Special attention is given to obtaining consent for children and individuals with disabilities.

Security Safeguards: Organizations are mandated to implement robust data security and protection measures. This extends beyond internal operations to encompass third-party vendors and supply chains, underscoring the interconnected nature of data security.

Empowering the Data Principal: The rules are designed to empower individuals by establishing clear mechanisms for grievance redressal, data updates, data removal, and the appointment of nominees.

Data Retention: The rules specify data retention periods based on the nature of services and intermediaries, along with provisions for exception management.

Strategic Imperatives for Organizations: Beyond Compliance

The DPDPA signifies a fundamental shift in India's approach to managing digital data privacy. For organizations, this presents a unique opportunity to cultivate an environment of trust with their stakeholders – customers, regulators, and investors – ultimately driving value and fostering innovation.

It's crucial for businesses to view the DPDPA not just as a compliance checklist, but as a holistic strategic imperative. This requires seamless collaboration across the C-suite:

Marketing must balance personalization with the principles of active consent.

Procurement needs to ensure that third-party engagements adequately address data privacy requirements.

Research & Development and Engineering teams must be sensitive to the ethical use of personal information.

Customer Service departments need to establish effective grievance mechanisms.

Technology teams are responsible for laying the foundation for robust data security.

Legal functions must ensure compliance while fostering an environment that encourages innovation.

This moment presents an opportunity for organizations to gain a strategic advantage. Ethical data stewardship can cultivate customer loyalty, enhance brand reputation, and build trust in an era where customer experience is paramount to success.

Cultivating a Privacy-Centric Culture: The Path Forward

Fostering a privacy-centric culture under the DPDP Act begins with strong leadership commitment. The C-suite must champion a "privacy-first" mindset, placing trust and transparency at the core of their operations. This involves embedding accountability into governance frameworks and allocating sufficient resources.

While the DPDP rules establish a foundation for compliance, they represent merely the starting point for effective data privacy practices. The regulation offers far more than a simple mandate; it's a powerful lever to elevate trust, accountability, and innovation within the digital economy. By strategically aligning data privacy and protection with broader business objectives, organizations can forge a future where trust and progress are inextricably linked, demonstrating that regulatory frameworks can indeed drive both ethical responsibility and commercial success.

Ultimately, enterprises should seize this opportunity to cultivate "Digital Trust" across their entire ecosystem, encompassing customers, employees, regulators, and third-party partners.

Read More:<a href="https://www.storyboard18.com/how-it-works/dpdp-act-making-sense-of-the-rules-for-marketers-52586.htm" rel="noopener" target="_blank">DPDP Act: Making sense of the rules for marketers</a>

Decoding India’s DPDP rules: What businesses need to know and do

The US Justice Department and a coalition of state attorneys general will deliver closing arguments on May 30 in a landmark antitrust case against Google, as a federal judge weighs whether the tech giant should be compelled to divest its Chrome browser and halt practices that regulators say have stifled competition in online search.

The case, the most significant challenge to a tech company’s market dominance since the Microsoft trial more than two decades ago, could reshape the business of internet search and digital advertising. Prosecutors are seeking sweeping structural and behavioral remedies, including forcing Google to share search data with rivals and to cease multibillion-dollar payments to Apple and other partners that set Google as the default search engine on smartphones and other devices.

The proposals come after U.S. District Judge Amit Mehta ruled last year that Google unlawfully maintained monopolies in search and search advertising, leveraging its dominance to lock out competitors. A final decision on the remedies is expected by August.

Artificial intelligence firms, which are already beginning to erode Google’s dominance as the default gateway to online information, could stand to gain from any mandate that loosens Google's grip. Reuters reported, during testimony, Nick Turley, head of product at OpenAI’s ChatGPT, said the company would be interested in acquiring Chrome if it were made available. He added that access to Google’s trove of search data would significantly improve the accuracy and timeliness of ChatGPT’s responses.

Google, for its part, argues that the remedies proposed by the government are overly punitive and exceed the scope of the court’s findings. The company has taken preliminary steps to open its ecosystem, including easing default search arrangements with partners like Samsung Electronics. However, the Justice Department has urged the court to go further, pressing for a ban on the lucrative default placement deals that helped entrench Google’s dominance.

The outcome of the case could have profound implications for how consumers access information online and for the future trajectory of competition in one of the most lucrative corners of the tech industry.

Google faces final antitrust showdown as US pushes for sweeping remedies

The government is turning up the pressure on major technology and e-commerce companies to eliminate so-called "dark patterns", deceptive design tactics embedded in digital platforms that can mislead or manipulate consumers.

At a high-level meeting convened by the Ministry of Consumer Affairs on Tuesday, representatives from Amazon, Apple, Swiggy, Paytm, Ola, WhatsApp and other digital platforms were called upon to rein in such practices and to publicly disclose audit results related to their user interface designs.

Pralhad Joshi, Minister of Consumer Affairs, emphasized the government’s commitment to protecting consumer rights, singling out specific tactics such as the “advance tip” feature on ride-hailing apps like Ola, Uber and Rapido. These pre-selected gratuity prompts, Joshi said, may require reevaluation and possible redesign. Companies will be granted a short window to make necessary corrections.

<img src="https://images.storyboard18.com/storyboard18/2025/05/Non-metro-2025-05-31T075307.067-2025-05-5e2722332a355ee52a769fe854878357.jpg" alt="" width="1080" height="1080" class="aligncenter size-full wp-image-68153" />

The term “dark patterns” was first coined in 2010 by British UX specialist Harry Brignull to describe interface designs that deliberately steer users toward decisions they might not otherwise make—such as signing up for unwanted services or revealing personal information. These manipulative tactics, regulators say, compromise informed consumer choice and can lead to unethical marketing and breaches of trust.

In 2023, India officially recognized 13 types of dark patterns as unfair trade practices under the Consumer Protection Act, 2019. Offenders can face fines of up to ₹20 lakh and imprisonment of up to six months.

A Closer Look at Common Tactics

Among the patterns identified:

Confirm Shaming: Using guilt-inducing language or visuals to dissuade users from opting out of offers or subscriptions.

Basket Sneaking: Automatically adding items to a shopper’s cart during checkout without explicit consent.

False Urgency: Creating a false sense of limited availability to spur hasty purchases.

Forced Action: Requiring users to take unnecessary actions—like sharing personal data—to complete a task.

Subscription Trap: Making it deliberately difficult to cancel recurring services.

Interface Interference: Obscuring or highlighting information in a way that distorts decision-making.

Bait and Switch: Advertising one product or outcome, then delivering another.

Drip Pricing: Concealing additional costs until the final stages of checkout.

Disguised Ads: Presenting paid content or promotions as organic or editorial material.

Nagging: Bombarding users with repeated prompts or pop-ups.

Trick Wording: Using confusing language to mislead users.

SaaS Billing: Implementing opaque recurring billing in software services.

Rogue Malware Alerts: Employing scareware to trick users into unnecessary downloads or purchases.

Data Points and Industry Impact

A 2023 study by the Advertising Standards Council of India (ASCI) found that 52 out of 53 apps examined employed dark patterns, with health-tech platforms leading the trend. Travel and fintech apps also registered high usage. These apps, collectively downloaded over 21 billion times, deployed an average of 2.7 dark patterns each.

Privacy deception emerged as the most frequent violation, followed by interface interference, drip pricing, and false urgency.

An independent 18-month survey conducted by citizen platform LocalCircles, covering responses from over 230,000 consumers and 228 platforms, confirmed that dark patterns were pervasive in sectors including e-commerce, digital banking, edtech, travel, ride-hailing and streaming. The two most common practices were forced action (54%) and drip pricing (48%).

Tools for the Digital Age Consumer

In response, the government has introduced three consumer-facing tools developed in partnership with the Indian Institute of Technology (BHU):

Jagriti App: Enables users to detect and report instances of dark patterns.

Jago Grahak Jago App: Provides real-time safety ratings for e-commerce platforms.

Jagriti Dashboard: Helps regulators track and assess deceptive UX practices across digital services.

These tools aim to empower users and strengthen regulatory oversight in a digital economy increasingly driven by algorithmic influence and opaque design choices.

As the digital economy matures, the challenge for regulators will be balancing innovation with transparency—and ensuring that consumer trust is not sacrificed in pursuit of growth.

Read More: <a href="https://www.storyboard18.com/how-it-works/ccpa-needs-more-teeth-to-tame-dark-patterns-industry-demands-tougher-regulation-and-penalties-66938.htm">CCPA needs more teeth to tame dark patterns; industry demands tougher regulation and penalties</a>

Dark Patterns, Explained: The digital design tactics misleading millions

Microsoft CEO Satya Nadella has shed light on the company's recent decision to lay off around 6,000 employees—roughly 3% of its global workforce—stressing that the move was not a reflection of employee performance but rather a strategic realignment to prepare for a rapidly shifting tech landscape.

Addressing employees at a company-wide town hall, Nadella clarified that the layoffs stem from a broader organisational restructuring aimed at positioning Microsoft as a leader in artificial intelligence. “This was about reorganisation rather than performance,” he said, signalling that the company’s workforce reshuffle is designed to support its long-term AI ambitions.

A AI Bet
At the heart of this pivot is a staggering $80 billion investment in AI infrastructure planned for this year alone. Microsoft is aggressively scaling its AI capabilities, including expanding data centers, hiring AI specialists, and integrating AI tools like Copilot across its suite of software products, from Office to Azure.

As AI becomes central to Microsoft’s growth narrative, the company is redefining roles across its departments. Many jobs, especially in traditional product development and engineering teams, are being restructured or phased out to make room for new positions focused on machine learning, AI product development, and related services.

Joining the town hall, Microsoft Chief Product Officer Aparna Chennapragada tackled rising concerns that the surge in AI tools might devalue coding and computer science skills. “I fundamentally disagree with the notion that people should not study computer science or that coding is dead,” she said, addressing growing anxieties sparked by AI models that can now write and debug code.

Her reassurance underscores Microsoft’s stance that while AI may change how developers work, it won't replace the need for strong technical foundations—especially as human oversight, creativity, and logic remain critical in AI-driven systems.

Although the layoffs mark a painful moment for affected employees, Microsoft’s leadership maintains that these are proactive decisions intended to future-proof the organisation. Nadella acknowledged the human cost of such restructuring but emphasised that these changes are necessary for Microsoft to lead the next wave of innovation.

“We have to align ourselves with where the world is going,” Nadella reportedly told employees, reiterating his belief that AI will be as transformative as the internet or the smartphone.

With this AI-first vision, Microsoft is not only revamping its internal teams but also signaling to the broader tech industry that the age of general-purpose software development is giving way to an era of intelligent, adaptive systems—and the company intends to be at the forefront of that shift.

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Satya Nadella explains Microsoft layoffs: Not a performance issue

Spiritual leader Sadhguru Jaggi Vasudev has moved the Delhi High Court seeking protection of his personality rights, alleging that artificial intelligence (AI) is being misused to generate and circulate unauthorised content featuring his name and likeness. The petition highlights a growing concern among public figures globally about how AI-generated content can distort reputations, infringe on image rights, and mislead the public.

During a hearing before Justice Saurabh Benarjee, Sadhguru’s legal team argued that several websites and digital platforms have been exploiting his identity without consent, leveraging his image to promote products under the guise of authenticity. A notable example presented was the use of his photograph on the cover of a book titled Garbh Yatra, which Sadhguru clarified he had no involvement with. “People are blindly trusting these offerings because of my reputation, making this a clear case of fraud,” the spiritual leader stated. “These entities are leveraging AI to deceive the public.”

The plea calls for urgent judicial intervention to issue takedown orders against websites and intermediaries found misusing his image or impersonating him using AI tools. The petition also highlights the need for stronger legal safeguards in an age where deepfakes and AI-generated misinformation can go viral with little accountability.

Representatives from Google, appearing before the court, responded that as intermediaries, platforms require specific URLs or detailed reports to take down offending content. They clarified that platforms cannot act proactively without formal takedown requests, as per current intermediary guidelines in India.

After hearing initial arguments, the court reserved its order and indicated that an interim ruling would be issued shortly.

This is not the first time Sadhguru has taken legal recourse to defend his reputation in the digital space. In March 2025, the Delhi High Court had ordered the removal of defamatory videos and content published by a YouTuber targeting Sadhguru’s Isha Foundation. In that case, the court reinforced that the right to reputation forms an integral part of one’s dignity and must be protected even while preserving freedom of speech.

The case underlines an emerging challenge as public personalities grapple with the rapid rise of generative AI and the ease with which it can be used to replicate voices, faces, and even behavioural traits for commercial or malicious purposes. Legal experts suggest that India, like many other countries, may need to revise its personality rights framework and IT rules to address the nuances of AI-generated impersonation.

<a href="https://www.storyboard18.com/how-it-works/amid-ani-controversy-govt-broadcasters-make-content-free-or-affordable-for-creators-68075.htm">Read More: Amid ANI controversy, Govt broadcasters make content free or affordable for creators</a>

Sadhguru moves Delhi High Court to curb AI misuse of his identity

India is on track to become the "data capital of the world" within the next five years, Union Minister of Communications Jyotiraditya Scindia said on Friday, highlighting the country’s meteoric rise as a digital-first economy.

Speaking at the Confederation of Indian Industry (CII) Annual Business Summit 2025, Scindia credited the drastic fall in data costs and rapid telecom expansion for this transformation. "Just 11 years ago, 1 GB of data cost ₹287. Today, it's just ₹9 — a 97% drop," he said. At 11 cents per GB, India’s data prices are among the lowest globally, just 5% of the world average of $2.50 per GB.

“This is why I believe India will be the data capital of the world in the years ahead,” the Minister added.

Scindia pointed to India's massive digital leap over the past decade. The number of mobile subscribers has grown from around 800 million to 1.2 billion, making India the second-largest mobile market globally. Internet users have surged from 250 million to 974 million, and broadband subscriptions have skyrocketed from 66 million to nearly 940 million.

He also highlighted India’s strides in technological self-reliance, particularly the development of an indigenous 4G telecom stack — making India only the fifth country in the world to do so. This homegrown technology is now being rolled out on BSNL's network, with nearly 94,000 of the planned 100,000 towers already deployed.

In a further sign of the public sector telecom revival, BSNL has reported back-to-back quarterly profits — the first time in 18 years.

Scindia’s remarks underscore the pivotal role India's telecom revolution is playing in reshaping the global digital economy, with affordability, scale, and innovation as key drivers.

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India set to become the ‘Data Capital of the World’, says Scindia

Following the escalation of a years-long regulatory standoff, the Ministry of Information and Broadcasting (MIB) has issued licence fee demands amounting to nearly Rs 16,000 crore to major direct-to-home (DTH) operators including Dish TV, Tata Play, and Airtel Digital TV. The companies are challenging the basis and quantum of these claims, arguing the demands are not only excessive but also legally disputable.

As per a report by The Economic Times, Dish TV faces a demand of Rs 6,735 crore, Tata Play has been served a notice for Rs 5,257 crore, and Airtel Digital TV is liable for Rs 3,606 crore. These figures include retrospective dues and interest accumulated over the years for allegedly unpaid licence fees since the launch of their services.

At the core of this dispute lies the calculation of licence fees under DTH service agreements. As per current MIB norms, DTH operators must pay a licence fee equivalent to 8% of their Adjusted Gross Revenue (AGR).

However, operators have long contested what qualifies as "adjusted gross revenue," arguing that the government’s inclusion of non-core revenues and certain exemptions is arbitrary and inconsistent with telecom precedent.

In its recent regulatory filings, Dish TV disclosed in its FY25 financial results that it has been provisioning for the disputed amount, which currently stands at Rs 4,612.69 crore (up from Rs 4,359.43 crore in FY24). The company has maintained that its writ petition challenging the demand remains sub-judice before the Jammu & Kashmir and Ladakh High Court. The development, disclosed in the company’s FY25 results, comes at a time when the long-standing dispute over DTH licence fee computation remains unresolved in court.

Read more: <a href="https://www.storyboard18.com/how-it-works/ministry-of-ib-demands-rs-6735-crore-from-dish-tv-in-licence-fee-dispute-67877.htm">Ministry of I&B demands Rs 6,735 crore from Dish TV in licence fee dispute</a>

Dish TV India received a fresh notice from the Ministry, directing it to pay Rs 6,735.67 crore towards licence fees, including interest, for the period since the grant of its DTH licence up to the financial year 2023-24. The company has challenged the demand, calling the calculation methodology flawed, and highlighted that the matter is sub judice. The demand was communicated via a letter dated April 22, 2025, and includes significant interest accrued over the years.

"In relation to the ongoing dispute with respect to the validity, computation and payment of DTH License Fees between the Company and MIB, a writ petition filed by the Company is pending before the Hon'ble High Court of Jammu & Kashmir and Ladakh wherein inter alia the quantum/ applicability of License Fee and imposition of interest has been challenged by the Company," the DTH operator notified bourses.

The Court had allowed the interim prayer of the Company vide order dated October 13, 2015 which continues to be in force till the pendency of the writ. Similar writs filed by other DTH operators (including the writ petition filed by erstwhile Videocon d2h Limited acquired by the company in 2017-18) are also pending before the Supreme Court of India.

Tata Play, too, is locked in a legal dispute over similar grounds and has previously flagged the ambiguity around AGR definition. Airtel Digital TV is expected to take a similar route, escalating the issue in courts.

Govt slaps Rs 16,000 cr licence fee demand on DTH players; Dish TV, Tata Play, Airtel dig into legal trenches

A group of activist Tesla shareholders has issued a sharp rebuke to CEO Elon Musk, urging him to dedicate at least 40 hours per week to the electric vehicle company, warning that his divided focus - particularly his involvement with the Trump administration - has undermined Tesla's performance and public standing, according to media reports.

In a letter sent Wednesday to Tesla board chair Robyn Denholm, the coalition expressed growing frustration with the company, according to a report by The Washington Post.

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The group, led by the labour-backed SOC Investment Group and including several small investors, controls just under 8 million Tesla shares - a small portion of the company's 3.2 billion outstanding shares.

"The current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO’s absence," the shareholders wrote, the report added. 

The letter cited a 71% drop in profits and a 13% decline in sales in Tesla's most recent quarter as evidence of Musk's distraction, particularly his work with the controversial U.S. Department of Governmental Enterprise (DOGE) Service, which has dominated his schedule over the past year.

The investors accused the board of failing to act in the best interests of shareholders, pointing to deteriorating financials, human rights controversies, and the erosion of Tesla’s global image. Since peaking in December 2024, Tesla’s stock has fallen roughly 24%, though it has slightly rebounded as Musk hinted at stepping back from his federal commitments.

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Beyond calling for Musk’s increased presence, the letter urged the board to develop both short- and long-term leadership succession plans and push for governance reform. It recommended appointing at least one new independent director with no ties to current board members and limiting external obligations among directors, the report added.

The letter also referenced the recent ruling by a Delaware judge that invalidated Musk’s $56 billion pay package, citing insufficient board independence. That decision prompted Musk to start relocating Tesla’s legal headquarters from Delaware to Texas

While The Wall Street Journal reported this month that Tesla’s board had quietly begun a CEO search, Denholm dismissed the speculation on X, stating, “The Board is highly confident in [Musk’s] ability to continue executing on the exciting growth plan ahead.”

Still, the letter marks a continuation of shareholder unrest. Several of its signatories had previously opposed ratifying Musk’s 2018 compensation package, citing concerns over his multitude of ventures, the report added.

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DIGITAL