That revelation was one of the factors that ultimately led the lenders to seize most of the UK-based AI startup’s cash, the people said. The company, valued at about US$1.5 billion in its last fundraising round, is now planning to file for bankruptcy, marking the biggest collapse of an AI startup since ChatGPT’s 2022 release ushered in a surge of investment in the industry.
When Builder.ai was seeking an emergency loan last year, the startup gave lenders a revenue forecast that proved to be four times its actual sales, people familiar with the matter said.
A group of creditors, led by Israeli firm Viola Credit, were originally told that Builder.ai projected sales of US$220 million ($284.1 million) for 2024, the people said, asking not to be identified because the information isn’t public. The company later disclosed that the actual revenue amount for the year turned out to be about US$50 million, they said.
