02/06/2025
🚨 $1.5 Billion AI Startup Builder.ai — Now Bankrupt!
Despite backing from tech giants like Microsoft and the Qatar Investment Authority, Builder.ai has filed for bankruptcy. Here's why this is shaking up the tech world:
⚠️ The "AI" Was Mostly a Facade
Builder.ai claimed to build apps using AI. But behind the curtain, it was actually powered by 700 engineers in India — misrepresented as artificial intelligence.
📉 Revenue Was Allegedly Inflated by 300%
In 2024, they reported $220M in revenue. The truth? Only $55M. Internal audits exposed shocking financial discrepancies.
💸 Fake Sales & Round-Tripping
They reportedly engaged in round-tripping with VerSe Innovation (Dailyhunt’s parent), booking fictitious sales through mutual invoicing.
💥 Final Blow: $37M Seized by Creditor
When Viola Credit withdrew $37M from their accounts, Builder.ai couldn’t even cover employee salaries — and collapsed shortly after.
🔍 Lesson for Founders, Investors & Marketers:
Hype doesn’t build lasting companies. Flashy buzzwords like "AI" might raise funding, but transparency, substance, and sustainable ex*****on win in the long run.
