US EditionInside the Collapse of Microsoft-Backed Tech Unicorn Builder.ai
- Builder.ai, a London-based startup backed by Microsoft that reached a valuation of $1.5 billion, sought bankruptcy protection in the US following the insolvency of its UK operations in June 2025.
- The collapse followed years of inflated revenue claims, founder Sachin Dev Duggal stepping down in February 2025, and new CEO Manpreet Ratia uncovering extensive financial misreporting.
- Audits revealed Builder.ai overstated 2024 revenue by 300 percent, claiming $220 million while actual revenue was about $50 million, prompting lender Viola Credit to seize $37 million.
- Although Builder.ai marketed its software platform as AI-powered, investigations showed nearly 700 engineers in India manually coded apps while internal memos directed hiding this human labor.
- US prosecutors have launched a securities fraud investigation with subpoenas for financial records, and the failure has renewed concerns over the growing trend of ‘AI washing’ in the tech industry.
73 Articles
73 Articles
Builder.ai, a London-based startup, declared bankruptcy after revealing that her artificial intelligence platform (AI)...
Sky News UK
khbrknewsAdministrators lined up for UK arm of Microsoft-backed Builder.ai
The UK arm of the app-building tech company, which had drawn investment from a Qatari sovereign wealth fund, is lining up Alvarez & Marsal as administrator, Sky News understands.
Turns Out 'Revolutionary' AI Was Powered By 700 Developers
Dude, I TOLD you AI was vaporware! Via Business Today: Builder.ai, once touted as a revolutionary AI startup backed by Microsoft, has collapsed into insolvency after revelations that its flagship no-code development platform was powered not by artificial intelligence—but by 700 human engineers in India. The company marketed its platform as being driven by an AI assistant named “Natasha,” which could supposedly assemble software applications like…
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