From Yahoo Finance: 2025-05-26 15:16:00

US prosecutors are investigating Builder.ai, an AI company that recently went bankrupt. The company’s General Counsel instructed employees to preserve documents after a subpoena from the US Attorney’s Office in Manhattan. Former employees alleged inflated sales figures, leading to the CEO’s ousting. The company was valued at $1.5 billion in 2023.

Builder.ai, backed by Qatar Investment Authority and Microsoft Corp., is appointing an administrator for insolvency after creditors seized cash. The company overstated revenue by 300%. Investors included World Bank Group’s International Finance Corp., Jeffrey Katzenberg’s WndrCo, and SoftBank Group Corp.’s Deepcore. Builder.ai was an early European tech success.



Read more at Yahoo Finance: US Prosecutors Sought Builder.ai Data After Sales Overstated