Many AI startups have grown too quickly, without strong business models or genuinely new tech.
Phil Brunkard
Info-Tech Research Group

Key Facts
- Builder.ai raised $445 million in investment from global investors including Microsoft before its collapse.
- Builder.ai’s platform relied on around 700 engineers in India who manually wrote code based on customer requests.
- Builder.ai defaulted on a $50 million loan from Viola Credit earlier in 2025, leading to financial distress.
- Viola Credit seized $37 million from Builder.ai’s accounts, crippling its ability to pay staff or continue operations.
- Builder.ai officially entered insolvency in the UK, marking the collapse of the AI startup.
- Experts warn the AI startup boom hype often outpaces technology and that investors back big promises without fully understanding the risks.
Key Stats at a Glance
Number of engineers employed by Builder.ai
700 engineers
Total investment raised by Builder.ai
$445 million

Loan default amount by Builder.ai
$50 million

Amount seized by Viola Credit from Builder.ai
$37 million
