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Tarun Suthar
•

The Institute of Chartered Accountants of India • 5m

Microsoft-backed Builder.ai files for bankruptcy 📉 Another AI unicorn has fallen. this time, it’s Builder.ai. Once hailed as a game-changer with $450M+ in funding from giants like Microsoft and Qatar’s sovereign wealth fund, Builder.ai promised a no-code future where anyone could build software with AI. The dream was bold. The valuation soared past $1B. But behind the curtain, the reality was much less glamorous. By 2023, revenue projections were slashed to $140M after struggles in key markets. The team ballooned to 1,500+, only to face a massive layoff of 270 employees. By early 2025, the founder had stepped down. Audits began. And when creditors entered the scene, just $7M in cash remained. ⁉️ So what went wrong? The story ran ahead of the product. Hype overtook execution. The AI wasn't as autonomous as promised. Systems failed to scale with ambition. And the fundamentals --- product-market fit, control, and sustainable revenue --- were lost in the race for rapid growth. Builder.ai’s collapse is a cautionary tale: In tech, hype can open doors. But only EXECUTION keeps the lights on.

3 Replies

Replies (3)

Greg

👤 • 5m

have been reading about a lot of startups filing bankruptcy lately.

Rajdeb Dey
•

Protrader • 5m

Bad news so far

1 Reply

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