Builder.ai, Microsoft-Backed AI Startup, Files for Bankruptcy Amid Financial Collapse

Builder.ai, a British AI software company backed by Microsoft and Qatar Investment Authority, has entered insolvency proceedings after losing most of its cash to creditors. The company, which aimed to simplify app and website development through AI, faced significant financial and leadership challenges, including inflated sales figures and executive departures. Despite previous investments totaling over $450 million, Builder.ai’s financial difficulties have led to layoffs and its impending bankruptcy in multiple jurisdictions. The collapse highlights the risks associated with rapid AI startup funding amidst booming investor enthusiasm.