UK-based AI startup Builder.ai reportedly filed for bankruptcy in a Delaware court on 2 June after creditors seized the majority of the company’s funds.
According to Bloomberg, filings revealed the start-up had overstated its 2024 sales projections by 300 per cent, leading to the cash seizure.
Among the list of creditors published by the company in its filings are Amazon, Microsoft, US law firm Quinn Emanuel, and Israeli private intelligence company Shibumi Strategy, Financial Times added.
The London-based start-up, once valued at $1.5 billion, also allegedly fabricated deals with Indian social media company VerSe Innovation in an attempt to inflate…
