It Used Indian Programmers Instead of AI: Collapse of a $1.5 Billion Company
Algiers, May 31, 2025 – Builder.ai, once a leading name in the global software industry, has collapsed following a series of scandals and financial challenges that led to its bankruptcy. The company, which had previously secured funding from Microsoft and the Qatar Investment Authority, reaching a valuation of $1.5 billion, recently halted its operations after laying off 80% of its workforce and losing its key investors.
AI Scandal
The trouble began in 2019 when the Wall Street Journal exposed that the company, then known as Engineer.ai, was barely using artificial intelligence as claimed, instead relying on a large team of Indian programmers to develop software. Despite rebranding to Builder.ai and securing $250 million in new investments in 2023, the company continued to face issues.
Accusations and Collapse
In 2024, Builder.ai faced allegations of inflating revenue figures to mislead investors. In February 2025, it underwent a leadership crisis with the replacement of its founder. After laying off 80% of its staff in May, the company declared bankruptcy and appointed an administrator to manage its remaining obligations.
Company Statement
In a statement, Builder.ai said: “Despite our team’s efforts, we have failed to recover from historical challenges. Our priority is supporting our employees, clients, and partners during this difficult time, and we will work closely with administrators to explore all possible options.”
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