AI software program firm Builder.ai is coming into insolvency proceedings, an organization spokesperson confirmed to iinfoai.
The Microsoft-backed unicorn, which has raised greater than $450 million in funding, rose to prominence for its AI-based platform that aimed to simplify the method of constructing apps and web sites.
In keeping with the spokesperson, Builder.ai, also called Engineer.ai Company, is appointing an administrator to “handle the corporate’s affairs.”
“Regardless of the tireless efforts of our present staff and exploring each doable possibility, the enterprise has been unable to recuperate from historic challenges and previous choices that positioned important pressure on its monetary place,” the corporate mentioned in a press release. “Our fast precedence is to help our staff, prospects, and companions via this tough time. We are going to work carefully with the appointed directors to make sure an orderly course of and to discover all accessible choices for components of the enterprise, the place doable.”
Builder.ai has confronted main management shakeups and monetary points over the previous few months. In March, it was reported that the corporate final summer season lowered its estimated income by 25% for the second half of 2024. In February, the corporate appointed a brand new CEO, Manpreet Ratia.
Builder.ai employed auditors to check its financials, indicating that one thing could have been off behind the scenes. In keeping with Bloomberg, former staff alleged that the corporate had inflated gross sales figures by greater than 20% on a number of events.
Earlier than Engineer.ai largely rebranded to Builder.ai, it attracted a minor scandal. Engineer.ai claimed to have constructed a largely automated app improvement platform, however the platform in fact relied closely on human engineers, in accordance with The Wall Avenue Journal.
