Welcome back to TechCrunch Today. In our top story, AI software startup Builder.ai—formerly known as Engineer.ai—has entered insolvency proceedings and is appointing an administrator to manage its affairs. Once valued at over one billion dollars and backed by Microsoft, the company raised more than $450 million to power its AI platform for building apps and websites. In a statement, Builder.ai said, “Despite the tireless efforts of our current team and exploring every possible option, the business has been unable to recover from historic challenges and past decisions that placed significant strain on its financial position.”

Over the past year, the company slashed its revenue estimates by 25 percent for the second half of 2024, underwent major leadership shakeups, and faced allegations of inflating sales figures by more than 20 percent. Before rebranding, Engineer.ai claimed an automated platform but in fact relied heavily on human engineers.

That’s the latest from TechCrunch Today. Stay tuned for more updates on this story.
Link to Article