The founder of an Australian artificial intelligence start-up, David Fairfull, has been sentenced to nine years in prison for defrauding investors of $39 million. Fairfull falsely inflated revenue figures to attract investment in his company. The Federal Court found that the AI product at the center of the scheme was largely non-functional, a deception that spanned several years. Investors were misled about the company’s financial performance and the viability of its technology. The sentencing follows a lengthy investigation into Fairfull’s business practices and financial records. Authorities say the case highlights the risks associated with investing in emerging technologies and the importance of due diligence. The fraud involved creating a false impression of a successful and innovative AI company to secure funding.