A Spanish-born entrepreneur, Albert Saniger, founder and former CEO of the fintech startup Nate, is facing fraud charges in the United States for misleading investors about the nature of his app. Marketed as a “one-tap” AI-powered shopping experience, Nate promised to automate online purchases using cutting-edge artificial intelligence. However, according to the US Department of Justice (DoJ), the app didn’t use AI at all—instead, human workers in the Philippines manually completed transactions behind the scenes.
The Illusion of Innovation: How Nate Faked AI to Secure Millions
Launched in 2018, Nate was presented as a universal shopping cart, allowing users to shop from any e-commerce site with a single tap. It claimed to use AI to handle everything from size selection to payment details. In reality, these tasks were carried out by teams of contractors labelled as “purchasing assistants.” The FBI described the operation as a “scheme filled with smoke and mirrors,” with a true automation rate of “effectively zero percent.”
Saniger is accused of raising over $50 million by leveraging the hype around AI. Acting US attorney Matthew Podolsky noted that such deception not only harms investors but also undermines confidence in genuine AI innovations. The Verge previously revealed that Nate never used AI to complete checkout processes, exposing the illusion that sustained the startup’s image.
From Startup Star to Fraud Charges: The Fall of Nate’s Founder
The company’s downfall began in early 2023 when it ran out of funds and sold off its assets. Many investors suffered significant losses. Saniger had already stepped down as CEO and is now listed as a managing partner at a New York-based firm. Despite his promising background, including an MBA from London Business School and a stint at Amazon, his career is now overshadowed by these serious allegations, which carry a maximum prison sentence of 20 years.
This case reflects growing skepticism around AI startups and serves as a cautionary tale amid increasing scrutiny of tech industry claims. As the federal case progresses, it highlights the widening gap between tech promises and reality.
Summary:
Albert Saniger, founder of AI shopping app Nate, faces U.S. fraud charges after raising $50 million by falsely claiming the app used AI. In reality, human workers completed transactions. The startup collapsed in 2023, sparking investor losses and wider scrutiny of inflated AI claims in the tech industry.
