Builder.ai Collapses: $1.5B 'AI' Startup Exposed as 'Indians'

Summary

The tech world is reeling from revelations that Builder.ai, once hailed as a $1.5 billion (£1.11 billion), 'AI' powerhouse, now faces scrutiny as its highly promoted artificial intelligence facade crumbles, revealing a human-powered operation behind the cutting-edge AI automation.Builder.ai, the British no-code AI startup that once garnered acclaim for its strategic partnership with Microsoft and secured a $250 million (£184.64 million) investment led by the Qatar Investment Authority, declared Tuesday that it is initiating bankruptcy protection.As reported by Bloomberg, the company's dramatic decline occurred after a key lender, Viola Credit, withdrew $37 million (£27.33 million) from its accounts, leaving a mere $5 million (£3.69 million) in restricted funds and effectively paralysing operations in five nations.Earlier this year, CEO Manpreet Ratia took over from founder Sachin Dev Duggal in a boardroom shake-up designed to restore investor confidence. Ratia has since stated that most of the company's workforce has been laid off. As Bloomberg reports, Builder.ai will now commence bankruptcy filings in its operational territories, including the UK, US, UAE, Singapore, and India.Builder.ai's $450 Million Funding: Big Names, Big PromisesLaunched in 2016, Builder.ai presented itself as a groundbreaking platform, allowing businesses to create customised applications with minimal coding, leveraging artificial intelligence. As reported by Bloomberg, the company accumulated over $450 million (£332.36 million) in total funding, drawing in prominent investors such as Microsoft, the World Bank's IFC, Jeffrey Katzenberg's WndrCo, Lakestar, and SoftBank's DeepCore incubator.Less than two months ago, Builder.ai admitted to revising down core sales numbers and engaging auditors to inspect its financials for the past two years. This came amidst concerns from former employees who suggested sales performance had been inflated during prior investor briefings.'Bots' Revealed As Build...