US EditionInside the Collapse of Microsoft-Backed Tech Unicorn Builder.ai
- Builder.ai, a London-based AI startup once valued at $1.5 billion and backed by Microsoft, filed for insolvency in May 2025 amid financial strain.
- The insolvency followed revelations that the company's AI platform, Natasha, relied on nearly 700 Indian engineers manually coding instead of autonomous software.
- Investigations revealed that between 2021 and 2024, Builder.ai and the Indian company VerSe engaged in exchanging inflated invoices that significantly exaggerated Builder.ai's reported sales, increasing them to nearly four times their actual value.
- Audits revealed Builder.ai's actual 2024 revenue was about $55 million, far below the $220 million claimed to investors, while owing $115 million in cloud debts to Amazon and Microsoft.
- The collapse has intensified scrutiny of AI washing practices in tech and triggered federal investigations into possible securities fraud involving Builder.ai.
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Behind bankruptcy plea of London start-up: It hired 700 Indian engineers to pose as AI tools
A major AI scandal has shaken the tech world as Builder.ai, once valued at $1.5 billion, has filed for bankruptcy. The company, backed by Microsoft and a Qatari sovereign fund, falsely claimed to build apps in minutes using AI, while actually relying on hundreds of human engineers in India.
·Mumbai, India
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He promised to democratize programming using AI, but behind Builder.ai there was only human talent, and yet he cheated even on Microsoft and other investors.
·Madrid, Spain
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Leaning Left4Leaning Right9Center7Last UpdatedBias Distribution45% Right
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45% Right
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C 35%
R 45%
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