The Rise and Fall of Builder.AI: A Cautionary Tale of Deception in the Tech Industry

Founded in 2016 by visionary entrepreneur Sachin Dev Duggal, Builder.AI (formerly Engineer.ai) aimed to revolutionize the app development landscape with its Artificial Intelligence (AI)-driven no-code platform. Headquartered in London, this ambitious startup garnered substantial investment from heavyweight firms such as Microsoft, the Qatar Investment Authority, SoftBank’s DeepCore, and the International Finance Corporation (IFC). At the heart of Builder.ai’s mission was the promise that creating software could be as effortless as ordering a pizza, thanks to its AI assistant named Natasha.

Throughout its journey, Builder.ai raised an impressive $450 million, reaching a valuation peak of $1.5 billion, and positioned itself as a trailblazer in the tech industry. However, beneath the glittering façade of innovation lay troubling truths that would soon unravel.

Recent investigations revealed that Builder.ai’s process relied heavily on a workforce of approximately 700 engineers based in India, who were manually tasked with writing code for various client projects. This reliance on human labor starkly contradicted the company’s public narrative that suggested its services were primarily powered by advanced AI technology. As discrepancies became increasingly evident, industry insiders, including notable figures like Linas Beliūnas from Zero Hash, began voicing concerns. In a pointed LinkedIn post, Beliūnas asserted that the company effectively misled its clients and the public, stating, “It turns out the company had no AI and instead was just a group of Indian developers pretending to write code as AI.”

Now, as the truth emerges, Builder.ai is facing not only financial turmoil, with bankruptcy looming on the horizon, but also intense scrutiny from regulatory bodies. This unfolding saga serves as a potent reminder of the risks inherent in the tech sector, where misleading claims and inflated valuations can lead to dire consequences.

In a landscape where innovation and integrity are vital for lasting success, Builder.ai’s trajectory offers critical lessons for entrepreneurs and investors alike: transparency is paramount, and authenticity should always underpin technological advancement. As the dust settles, the industry watches closely to see how this story will unfold and what repercussions it may have for the future of tech entrepreneurship.