Schultz, Who Exposed the Theranos Fraud, Warns: The AI Boom Could Spawn the Next Theranos
Tyler Schultz, who helped expose the Theranos fraud scandal, warned that the AI investment boom is creating the conditions for the next Theranos-like scam. He said the true capabilities of AI technology are hard to assess, and people often struggle to tell whether a product actually has unique technology or is merely an application interface layered on top of existing models such as ChatGPT. Schultz also said Holmes was skilled at manipulating others, and believes she was involved in the new blood-testing startup founded by her partner.
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The man who exposed the "female Steve Jobs" scam warns: The AI boom may breed the next Theranos
Phoenix Tech Download the app for exclusive early access October 31, 2026 08:24:09 From Beijing Updated October 31, 2026 08:29:03
Phoenix Tech News, October 31 (Beijing time) — Tyler Shultz, who helped expose the fraud scandal at the U.S. blood-testing company Theranos, recently warned that the AI investment boom is creating the conditions for the next Theranos-like scam.
In an interview with the U.S. media outlet The San Francisco Standard, Shultz said the true capabilities of AI technology are hard to assess, and people often struggle to tell whether a product actually has unique technology or is just an application interface layered on top of existing models such as ChatGPT.
"If you want to con people, I think this is a great opportunity to do it," he said.
Shultz met Theranos founder Elizabeth Holmes at Stanford University, later joined the company, and helped expose the false claims about its blood-testing technology.
Holmes once claimed that Theranos's device could perform multiple tests with only a small amount of blood. With that vision, she attracted a large amount of investment and briefly became a highly sought-after startup star in Silicon Valley, dubbed the "female Steve Jobs." But the company's technological promises ultimately failed to materialize, and the fraud scandal came to light.
Shultz's interview also touched on Holmes, who has recently drawn renewed public attention. After the release of Nathan Fielder's film "You Can See Everything," some viewers felt sympathy for Holmes.
Shultz takes a different view. He believes Holmes is good at manipulating others and is also very focused on her public image. Shultz said that although Holmes is still serving her sentence, she still appeared on the cover of People magazine and in this film that has drawn attention. He also claimed that Holmes is involved in a new blood-testing startup founded by her partner, Billy Evans.
"I think the only reason we're talking about Elizabeth Holmes right now is that she wants us to talk about her," Shultz said.
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