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Rio 3.5 397B AI project accused of fraud after delivering merged model instead of trained one

A large language model project, Rio 3.5 397B, which received R$500K (approximately $100K USD) in funding, is facing accusations of fraud. Initially, the project claimed to have developed a significantly improved model based on Qwen 3.5 397B. However, it was discovered that the model was merely a simple merge with Nex N2 Pro, with no additional training. After being caught, the project updated its documentation to admit the merge, while still asserting that additional training occurred and the wrong model was uploaded. A subsequent tweet suggested the final trained model was lost, necessitating a restart, which critics interpret as an attempt to pocket the funding and deliver a fake result. AI

IMPACT This incident highlights potential risks in AI project funding and development, suggesting a need for greater transparency and verification in model training claims.

RANK_REASON The cluster describes a controversy surrounding a specific AI model release, including accusations of fraud and misuse of funds, which falls under the 'tool' category due to its focus on a specific product's alleged malfeasance rather than a broader industry trend or frontier release.

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Rio 3.5 397B AI project accused of fraud after delivering merged model instead of trained one

COVERAGE [1]

  1. r/LocalLLaMA TIER_1 English(EN) · /u/Chromix_ ·

    It looks like Rio 3.5 397B could've simply been a semi-failed embezzling of funding

    <!-- SC_OFF --><div class="md"><p>Here is the chain of events:</p> <ol> <li>The model training <a href="https://tech.yahoo.com/ai/articles/rio-janeiro-built-ai-model-194348372.html">received funding</a> of R$500K (about $100K USD).</li> <li>The <a href="https://huggingface.co/pre…