Builder.ai
Promised "AI-powered app building as easy as ordering pizza" but was exposed as actually using 700 engineers in India. Shut down in 2025 after bankruptcy.
About
Founded 2016 as Engineering.ai, raised $450M from Microsoft, SoftBank, and IFC to reach $1.5B valuation. Marketed AI assistant "Natasha" as breakthrough in autonomous software creation. Exposed in 2025 as fraudulent - actually using human engineers rather than AI. Caught inflating revenues through fake billing schemes. Filed for bankruptcy and shut down operations in multiple jurisdictions.
Business Intelligence
Company
Builder.ai
Market Recognition
GrowingGaining recognition
Momentum
Strongly DecliningCompany Information
Founded
2016
Status
AcquiredHeadquarters
London, UK
Market Position
Market Position
EmergingPrimary Competitors
Financial
Funding Stage
Series C+Latest Funding
$125M (Microsoft strategic investment)
Funding Date
2023
Est. Revenue
$50M-$100MCustomer Sentiment & Momentum
Customer Sentiment
Very NegativeSentiment Notes
Catastrophic fraud destroyed all customer trust. One of the biggest AI startup scandals. Cautionary tale about AI washing and hype.
Momentum Analysis
Complete collapse after fraud exposure. "AI" was actually 700 engineers in India. Caught inflating revenues through fake billing schemes. Microsoft-backed unicorn went from $1.5B valuation to bankruptcy in 2025.
Competitive Intelligence
Strengths
- ✓None - fraudulent operation
Weaknesses
- ⚠Fraudulent AI claims
- ⚠Used human labor disguised as AI
- ⚠Revenue inflation
- ⚠Complete loss of trust
- ⚠Bankruptcy
More in Code & Development
Other tools you might find useful
GitHub Copilot
AI pair programmer that helps you write code faster
Cursor
The AI-native code editor revolutionizing software development. Built on VS Code with deep AI integration, Composer mode for autonomous multi-file edits, and context-aware suggestions that understand your entire codebase.
Claude Code
Terminal-first AI coding agent that lives in your command line, understanding entire codebases to automate development workflows through natural language