AI-powered sales automation startup 11x, backed by Andreessen Horowitz (a16z) and Benchmark, is facing serious allegations of misleading business practices. Reports indicate that the company has falsely claimed customers it does not have, including notable names like ZoomInfo and Airtable. Nearly two dozen sources, including investors and former employees, have revealed that 11x has encountered financial struggles, which they attribute largely to its own actions. The company allegedly counted trial users as full-year customers, inflating its annual recurring revenue (ARR) figures by four times. Additionally, there are claims of a toxic workplace culture and underwhelming product performance. 11x recently raised $50 million in Series B funding, but the allegations have prompted at least one company to threaten legal action over the misrepresentation of customer endorsements. The scrutiny surrounding 11x highlights broader concerns about the practices of AI startups in the rapidly evolving technology sector.