institutional access

You are connecting from
Lake Geneva Public Library,
please login or register to take advantage of your institution's Ground News Plan.

Published loading...Updated

Inside the Collapse of Microsoft-Backed Tech Unicorn Builder.ai

  • Builder.ai, a London-based startup backed by Microsoft that reached a valuation of $1.5 billion, sought bankruptcy protection in the US following the insolvency of its UK operations in June 2025.
  • The collapse followed years of inflated revenue claims, founder Sachin Dev Duggal stepping down in February 2025, and new CEO Manpreet Ratia uncovering extensive financial misreporting.
  • Audits revealed Builder.ai overstated 2024 revenue by 300 percent, claiming $220 million while actual revenue was about $50 million, prompting lender Viola Credit to seize $37 million.
  • Although Builder.ai marketed its software platform as AI-powered, investigations showed nearly 700 engineers in India manually coded apps while internal memos directed hiding this human labor.
  • US prosecutors have launched a securities fraud investigation with subpoenas for financial records, and the failure has renewed concerns over the growing trend of ‘AI washing’ in the tech industry.
Insights by Ground AI
Does this summary seem wrong?

71 Articles

All
Left
5
Center
8
Right
9
Think freely.Subscribe and get full access to Ground NewsSubscriptions start at $9.99/yearSubscribe

Bias Distribution

  • 41% of the sources lean Right
41% Right
Factuality

To view factuality data please Upgrade to Premium

Ownership

To view ownership data please Upgrade to Vantage

Wccftech broke the news in on Monday, June 2, 2025.
Sources are mostly out of (0)