Tyler Shultz Warns Investors That the AI Boom Creates a New Opportunity for Deception

Tyler Shultz, a former Theranos employee who exposed the company’s inaccurate blood‑testing devices, says the current AI surge presents a fresh avenue for fraud. Shultz argues that the difficulty of performing due diligence on AI products makes it hard to distinguish genuine innovation from a mere ChatGPT‑style façade. He warns that investors who hand large sums to individuals, as Holmes did when she raised a record‑setting angel round, risk empowering deceptive actors. The comparison to Theranos—whose $10 billion valuation was built on faulty technology—highlights the need for rigorous scrutiny in the AI era.