Early-stage AI-powered shopping app startup Nate has laid off most of its staff and stopped payment processing from its app, per sources close to the matter.  The news comes after reports surfaced that the company exaggerated the capabilities of its app. Instead of using AI to automate its processes, as initially claimed, reports revealed that the company hired workers overseas to manually enter transaction data. The recent move suggests that the New York-based startup may cease operations soon. The firm has previously raised $50M from backers, including Coatue Management and Forerunner Ventures.  Nate was valued at $307M in Jun. 2021.  Last March, Nate reportedly had $20M in cash in the bank when it received a $4M venture debt funding from TriplePoint Capital.  It began layoffs in June of last year, first laying off 30 employees, then contract workers in August, and then more layoffs in December.