Builder.ai Files for Insolvency After Raising $450 mn

AI software firm Builder.ai has officially entered insolvency proceedings, according to the Financial Times. The company has raised over $450 million to date.

The startup gained recognition for its AI-driven platform designed to simplify the development of apps and websites.

The London-based company, backed by Microsoft, informed employees during a company-wide call on Tuesday that it would be filing for bankruptcy.

In a statement to the Financial Times, the company confirmed that its primary entity, Engineer.ai Corporation, is entering insolvency proceedings and will appoint an administrator to oversee its operations.

The company has faced increasing instability over recent months, including financial troubles and leadership turnover.

In March, reports surfaced that Builder.ai had reduced its revenue estimates for the second half of 2024 by 25%.

A month earlier, Manpreet Ratia was named the new CEO.

Builder.ai also brought in external auditors to review its finances, signaling internal concerns.

According to Bloomberg, former employees claimed the company had repeatedly inflated its sales numbers by over 20%.

In the US, Rain AI, a San Francisco-based chip startup backed by OpenAI CEO Sam Altman, is exploring a potential sale after its efforts to raise $150 million from private investors fell apart, according to the New York Post.

The company, which claims its chips outperform and outclass industry leaders like NVIDIA in both power and efficiency, has been in acquisition talks for several weeks.

Among the interested parties is OpenAI, though it's unclear whether a formal offer has been made.

Altman — a key investor in Rain AI’s $25 million seed round in 2022 — is said to be closely monitoring the situation following the collapse of the startup’s Series B funding round.

Earlier this year, HP acquired Humane, the AI hardware startup behind the AI Pin, for $116 million.

Following the acquisition, Humane announced it will halt all sales of its $499 wearable device immediately. The move marks a swift