Microsoft-Backed Builder.ai Faces Insolvency After $1B Valuation Plunge

May 20, 2025
TechCrunch
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Summary

Builder.ai, a Microsoft-backed AI software company once valued over $1B, is entering insolvency proceedings due to financial strain, leadership turmoil, and alleged inflation of sales figures, despite raising over $450M in funding and promising simplified app development.

Key Points

  • Builder.ai, a Microsoft-backed AI software company once valued at over $1B, is entering insolvency proceedings due to financial strain.
  • The company is appointing an administrator to manage its affairs, citing historic challenges and past decisions that impacted its financial position.
  • Builder.ai, formerly known as Engineer.ai, faced leadership changes, allegations of inflated sales figures, and a rebranding controversy over its AI-based app development platform.

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