AI software program firm Builder.ai is getting into insolvency proceedings, an organization spokesperson confirmed to TechCrunch.
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 workforce and exploring each potential possibility, the enterprise has been unable to get better from historic challenges and previous choices that positioned vital pressure on its monetary place,” the corporate stated in a press release. “Our quick precedence is to assist our workers, prospects, and companions by way of this troublesome time. We are going to work intently with the appointed directors to make sure an orderly course of and to discover all accessible choices for elements of the enterprise, the place potential.”
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 workers 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 minor scandal. Engineer.ai claimed to have constructed a largely automated app growth platform, however the platform in reality relied closely on human engineers, based on The Wall Avenue Journal.
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