ARLINGTON, Texas — Though the jury is still out on the long-term implications of the latest artificial intelligence tools, it’s hard not to see some parallels to the Theranos scandal.
The medical device company run by convicted fraudster Elizabeth Holmes was full of promise, claiming to have developed a finger-prick blood test that could screen for a range of diseases and disorders. Proponents of new AI tools have made similarly lofty promises, with OpenAI CEO Sam Altman claiming in a 2025 blog post that the technology could one day cure cancer.
In the case of Theranos, though, those promises quickly dissolved upon further scrutiny. Thanks to the work of Theranos whistleblower Tyler Shultz and others, it soon became clear the blood testing technology was a fraud. Holmes would go on to receive a more than 11-year prison sentence for defrauding investors…