Back in May Builder.ai once a-flying up touted as a path-clearing AI-app builder filed for banktin the U. S. minating a spectacular fall that

The filing followed a flurry of activity that saw creditors seize its accounts the revelation that it may have been using engineers in India instead of AI and a probe into how builder.ai s founder spent money leading up to its collapse。

The collapse has sparked anger among Builder.ai 'sinvestors many of whom were stunned to learn of founder Sachin Dev Duggal'smultimillion-dollar share sales in the months leading up to bankruptcy。

Backed by estors including Microsoft and the Qatar it raised over 500 million and achieved a orn valuation north of 1.3 bon.

How did it start to crumble

According to the Financial Timesより, Duggal liquidated more than $20 million in personal holdings while assuring investors that the company remained on solid footing. Those sales, executed before creditors seized Builder.ai'saccounts, have fueled questions about whether the founder prioritized personal wealth over corporate survival.

Insiders told FT that Duggal'sforce of personality combined with his branding as Builder.ai's 'chief wizard' insulated him from tough questioning until it was too late.（英語）Board oversight lagged as the company aggresvely eted its AI vision even as interits ed widening discrepancies in its fin。

The Comeback Kid That Never Wasシングル

Launched in 2016 under the name Engineer.ai Builder.ai promised to enable businesses to build custom software with simple chat prompts that were in its words as easy as ordering pizza "

Builder.aiの“Swaunted”AIが人類開発者のvastネットワークの最前線に立っていたことが調査によって明らかになった。Rest of World Reported EmployeesはAIアシスタント“Natasha' handled barely any functional coding”と言います。

In reality around 700 engineers in India were doing the heavy lifting. The Wall Street Journal milarly noted the company seting eclied reality ause clients ected automation but instead manual code delivery.

金融危機と法的ブロウバック

Financial scrutiny uncovered staggering discrepancies the company reported $220 million in 2024 sales but audits pegged the actual figure closer to $50 million a nearly 75% inflation。Allegations surfaced that Builder.ai and India'sVerse Innovation engaged in “round-tripping' billing each other to artificial imaly inflate revenue. VerDenied wrongdoing.

Creditor Viola Credit seized $37 to $50 million from Builder.ai 'sbank accounts leaving the firm with a razor-thin cash runway. Subsequently the company entered insolvency proceedings in June laying off roughly 80% of its workforce約1，000 jobs.

The fallout has also been personal for employees. Rouly 80 percent of Builder.ai s 1，200-person workforce was laid off in June receiving little to no severance.インドの一部のスタッフは、マイクロソフトとカタール投資庁からの新たな資金調達が彼らの仕事を安全にするかもしれないという驚くべき月の早い時期にFTを失った。

AIハイプへのWiderインプリケーション

Builder.ai 'scexemplifies the hazards of “AI washing' where companies exagate or misrepresent their AI capities to attfunding and buzz.

Industry analysts now point to rising skepticism even from regulators about ostensibly “AI-powered”ventures. For estors the son been ally cly. Builder.ai 'sboard included seasoned executives and venture firms that had bet on Duggal'svision of democratizing app development.

Instead the company'simplosion has become a case study in governance failure investors relying too heavily on a charismatic founder boards not scrutinizing inflated financials and global backers eager to buy into the AI boom without demanding proof of genuine technology

創業者について

FT reporters noted that Duggal has since relocated to Dubai distancing himself from bankruptcy proceedings in the U. S. His exit has deepened frustration among former colleagues and investors left to reckon with the ruins of one of AI'shightest-profile startup flameouts。