Inside the Collapse of Artesian Builds: From $20,000,000 to Bankrupt

We backed this and took quite a bit of risk. Take hold of a LIMITED EDITION GN Cyber Skeleton foil shirt on our store: https://store.gamersnexus.net/products/limited-edition-foil-skeletal-cotton-t-shirt-with-pc-component-design – these will only be made once and will not be made again after. We typically sell through these within just weeks, and these are a great way to support our investigative journalism, research, and deep dives. They also support our test equipment purchases. Additionally, you can grab our toolkits, modmats, mouse mats, or other items on the store.

We had to organize with landlords, brokers, previous workers, legal professionals, and more to dig deep into the dubious, scummy operation of Artesian Builds and its previous CEO Noah Katz, whom we have heard has thrown around the word “civil suit” when discussing us. We will never back down from sharing the full story with consumers, especially when so many have been hurt by one company’s actions.

This deep dive gains exclusive access to the East Coast warehouse formerly used by Artesian Builds, dives into finances, and uncovers behavior we believe to be potentially fraudulent.

Get a GN Tear-Down Toolkit: https://store.gamersnexus.net/products/gamersnexus-tear-down-toolkit
Get a GN Modmat for PC building! https://store.gamersnexus.net/products/modmat-volt-large
Or a GN Blue & Black Mouse Mat: https://store.gamersnexus.net/products/gn-wireframe-mouse-mat

(Error correction: It’s a triceratops skull, not a tyrannosaurus skull)

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TIMESTAMPS

00:00 – Our Biggest Investigation
02:09 – Driven Into the Ground
04:52 – It Doesn’t Add Up
06:34 – Perceived Threat of Lawsuit
07:50 – What Really Went Wrong
09:10 – Obsession with Fame
10:45 – Probably Fraud, in our opinions
13:44 – Even More Probably Fraud (in our opinions)
15:32 – Screw the Customers
17:36 – Parents vs. Employees
19:30 – East vs. West Power Struggle
22:35 – Mutual Disrespect Internally
26:01 – GPUs as Currency
28:05 – Concluding Thoughts

**

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Host, Writing, Investigation, Editing: Steve Burke
Video Production, Filming, Video Editing: Andrew Coleman

14 Comments:

  1. (Error correction: It’s a triceratops skull, not a tyrannosaurus skull)
    We sponsored this and took a lot of risk to cover this story. Grab a LIMITED EDITION GN Cyber Skeleton foil shirt on our store: https://store.gamersnexus.net/products/limited-edition-foil-skeletal-cotton-t-shirt-with-pc-component-design – these will only be made once and will not be made again after. We typically sell through these within just weeks, and these are a great way to support our investigative journalism, research, and deep dives. They also support our test equipment purchases. Additionally, you can grab our toolkits, modmats, mouse mats, or other items on the store.

    Get a GN Tear-Down Toolkit: https://store.gamersnexus.net/products/gamersnexus-tear-down-toolkit
    Get a GN Modmat for PC building! https://store.gamersnexus.net/products/modmat-volt-large
    Or a GN Blue & Black Mouse Mat: https://store.gamersnexus.net/products/gn-wireframe-mouse-mat

    Watch our first part of this story here: https://www.youtube.com/watch?v=d9NzY8TDCAY

    Regarding RMA items – to answer a common question for “how can they keep it?” The problem is that, if you don’t have a record or good inventory of which item is whose, then it all is at risk of just becoming inventory. The creditor would have to figure it out, probably. It’s a warehouse full of computers, so if you don’t have good documentation on RMAs, then those items will just look like more computers that the company owns. There’s nothing that looks different about them than a desktop for an employee or a sold customer system, in the same way that if you bought an item and it never shipped, you’re not going to get a refund when they go under if other creditors get that money first. The system has to be there in order for it to be given back. You’d have to have the customer contact you prior to the auction and then you’d also have to see it and care in order to filter the items out, or you’d need a good inventory and RMA system — which at least one of the two warehouses did not have.

    • @Karl with a K It is a standard measurement for shareholders but also the case in point is that GN are still running, they have new premises and appear to be doing rather well. They would seem to know something of “business”. Just my opinion. The CEO of Artesian appeared to have the media presence sorted, somewhat lacking on the logistics aspect.

    • There is something deeply ironic about having such an inconsequential error in a brilliant investigative piece like this. Good job GN.

    • TheTerraFighter

      one rly sad thing is that IT Items have no realistic margin, the big sellers only make 1% win with this stuff and smaler stores try to make 5-10% but cant have good prices with some kind of normal margin^^

      normaly a trader who only sells to traders should make 30% and the trader with his store should make 50% or it wont work well…

    • I really do not understand why the RMAs can’t get their PCs back ‘as is’? Arteesian don’t own them….they are not their stock? Isn’t selling someone elses stuff they paid for…well….THEFT?

  2. Amazing video. I watched it yesterday. However, right now it’s number 27 on trending, which seems so cool as GN is growing more and more lol.

  3. Noah thought that changing his name would making his problems go away like what Facebook did 😂

  4. Thank you artesian for teaching me to never use a debit card. Ever.

  5. Mark's Game Reviews

    Artesian Builds once offered me an affiliate scheme for my Twitch channel. Host one of their panels, push their brand on stream and I’d get a % of each sale. I told them where to go when I did a bit of research and found they had a side company selling large mining rigs on Etsy. When I questioned them about this they said that was an old company and no longer operating, but I contacted that company anyway and they offered to not only build me whatever mining rig I wanted to but to also give me advice on how to maximise profits from it. So it was all bullshit and I had nothing more to do with them. With hindsight, that was one decision I got right!

  6. So if it was just the 9600 PCs they were making money on, that would work out to less than $2m per year, at a healthy $200 per build profit. Either their revenue was mostly social media, or they found a way to make 2k profit per build. Or they are engaging in their favorite pass-time once again.

  7. Thank you for doing this type of work.
    Hope to see more in the future and maybe good news for employees one hopes.

  8. That is a cool shirt.

  9. Thanks to his eagerness of being final voice for actions, he now goes changing alias – in the name of avoiding the consequences, affiliated to HIS actions… And now, for the re-wall

    I hope paybacks are done and active customers get their rig back [RMA / Support / etc.]

  10. I don’t think it is legal to purchase/sell customer items at auctions. Only the company’s assets.
    I hope someone buys them for people to ship home.

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