Don't say I didn’t, say I didn’t warn ya.
Because even before they rebranded from Engineer.ai to Builder.ai in 2019, their "largely automated app development platform" relied heavily on human engineers, not AI automation.
They built on hype and the promise of building custom software — without writing code.
Whereas in reality — AI isn’t there yet.
I've seen this over and over again in many, many startups and companies. And I always use this simple test:
👉 You can judge the amount of automation by the number of AI or data engineers they have hired.
It's my go-to reality check that cuts through all the marketing hype.
Builder.ai's story unfolded exactly as you'd expect:
→ 2016-2023: Raised $500M+ from Microsoft, SoftBank, Qatar Investment Authority
→ Their "AI assistant" Natasha was supposedly automating app development
→ Reality: Human developers in India were doing the work attributed to AI
→ May 2025: Creditors seized $37M, leaving them with $5M and bankruptcy
But here's what really gets me - this isn't about AI being worthless.
The tech is real. But it’s still early. There are serious limitations that haven’t been solved yet. So the real problem?
People pretending those limits don’t exist.
It's this fine balance that few people are getting right. (very few)
Builder.ai overpromised. And sold a fantasy the tech wasn’t ready for.
Mix that with inflated revenue claims (they said $220M in 2024 — real number was $55M), and you get a $1.5B house of cards.
And while it’s easy to dissect the failure, let’s not forget: hundreds of employees had their careers pulled out from under them.
They deserved better leadership. And more honesty.
Did you see through Builder.ai’s hype?
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