June 28, 2025
Builder.ai was a startup valued at $1.3 billion and backed by Microsoft. It collapsed in May after being accused of misleading investors by overstating its AI capabilities and relying primarily on Indian coders behind the scenes. The company's business model, which promised AI-driven app development for non-engineers, was revealed to be largely a marketing gimmick, leading to inflated revenue projections and unsustainable expansion.
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