# The Fall of Microsoft-Backed AI Unicorn: Builder.ai Enters Insolvency Proceedings
Dive into the shocking news that has sent ripples through the tech world – [Builder.ai](https://builder.ai), once a unicorn company backed by tech titan Microsoft, is now facing insolvency proceedings. This was confirmed to TechCrunch by a spokesperson for the AI software firm.
## The Rise and Fall of Builder.ai
Founded with the ambitious goal of simplifying app and website development using AI, [Builder.ai](https://builder.ai), also known as Engineer.ai Corporation, had raised over $450 million in funding. However, its journey seems to have taken a drastic turn.
According to the company’s spokesperson, an administrator has been appointed to manage [Builder.ai’s](https://builder.ai) affairs. In a statement, they explained, “[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.”
## A Tumultuous Road
The road for [Builder.ai](https://builder.ai) hasn’t been smooth lately. In March, reports emerged that the company had revised its estimated revenue for the second half of 2024 by a staggering 25%. Just two months earlier, the company appointed a new CEO, Manpreet Ratia.
[Builder.ai](https://builder.ai) also hired auditors to scrutinize its financials, raising eyebrows. Allegations from former employees, reported by Bloomberg, suggested that sales figures had been inflated by more than 20% on multiple occasions.
## A Scandal in the Past
Before [Builder.ai](https://builder.ai) underwent a significant rebranding, it found itself embroiled in a minor scandal. As reported by The Wall Street Journal, [Engineer.ai](http://engineer.ai), the company’s former name, claimed to have developed an almost entirely automated app development platform. However, the reality was quite different – the platform relied heavily on human engineers.
## Supporting Employees, Customers, and Partners
In these challenging times, [Builder.ai](https://builder.ai) vows to prioritize its employees, customers, and partners. The company aims to work closely with the appointed administrators to ensure a smooth process and explore potential salvage options for parts of the business.
Stay tuned as we continue to monitor this developing story in the tech world.