AI software company Builder.AI has been undergoing bankruptcy proceedings, a company spokesperson confirmed with TechCrunch.
With over $450 million in funding, Unicorn has become famous for its AI-based platform aimed at simplifying the process of building apps and websites.
According to a spokesperson, Builder.ai, also known as Engineer.ai Corporation, has appointed administrators to “manage the company’s operations.”
“Despite the tireless efforts of the current team and exploring all possible options, the business has not been able to recover from historical challenges and past decisions that have put a heavy burden on its financial position,” the company said in a statement. “A immediate priority is to support our employees, customers and partners throughout these challenging times. We will work closely with appointed managers to ensure an orderly process and explore all the options available to some of our business, where possible.”
Builder.ai has faced major leadership shaking and economic challenges over the past few months. In March, it was reported that last summer the company had reduced its estimated revenues for the second half of 2024 by 25%. In February, the company appointed new CEO, Manpreet Ratia.
Builder.ai hired an auditor to study finances. The former employee claimed that the company had inflated sales of more than 20% on multiple occasions, according to Bloomberg.
Before rebranding Engineer.ai primarily to Builder.ai, it attracted a small scandal. According to the Wall Street Journal, Engineer.ai claimed that it had built a largely automated app development platform, but in reality it relied heavily on human engineers.