Theranos Whistleblower Warns AI Boom Is Paving the Way for the Next Big Scam

Tyler Shultz, who helped expose the fraud at US blood testing company Theranos, has warned that the AI investment boom is creating conditions for a similar scam.

He said it is hard to judge what AI technology can really do. People often cannot tell if a product has its own technology or is just a layer built on top of existing models like ChatGPT. "If you want to cheat people, this is a great chance to do it," he said.

Back then, Theranos founder Elizabeth Holmes claimed her device could run many tests with just a few drops of blood. She raised hundreds of millions of dollars and was called the "female Steve Jobs," but the promise never came true. Shultz believes the environment that let Holmes raise money without proper checks is now even more common.

He also noted that Holmes, while still in prison, has appeared on magazine covers and is involved in a new blood testing startup founded by her partner. Shultz said Holmes will not be the last fraudster Silicon Valley has to face.