Microsoft-backed Builder.ai enters insolvency proceedings
a year ago
- #AI
- #Insolvency
- #Startup
- Builder.ai, an AI software company, is entering insolvency proceedings.
- The company, backed by Microsoft, raised over $450 million in funding.
- Builder.ai aimed to simplify app and website building with its AI platform.
- An administrator is being appointed to manage the company's affairs.
- The company cited historic challenges and past decisions as reasons for financial strain.
- Leadership shakeups and financial issues have plagued Builder.ai in recent months.
- Revenue estimates for the second half of 2024 were lowered by 25%.
- New CEO Manpreet Ratia was appointed in February.
- Auditors were hired to review financials amid allegations of inflated sales figures.
- Formerly known as Engineer.ai, the company faced scandal over misleading claims about automation.