From +1 Billion valuation to zero 🪦 Builder.ai just ran out of money a couple of days ago. Here's why I believe we’re going to see more of these cases in the coming months.
The Microsoft-backed unicorn Builder.ai raised more than $450 million in funding and rose to prominence for its AI-based platform aiming to simplify app building.
The fundamental cause behind the collapse was that their product and business model never matched their branding. In other words, their product wasn't that great and they weren’t as AI-driven as they claimed.
Simultaneously, multiple new no-code/low code building startups have gained massive traction. And even though Builder AI had a big headstart - being founded back in 2016 - they couldn't’ keep up.
I strongly believe we'll be seeing more crashes like Builder AI in the coming months. Great for overall innovation, tough news for these companies 🫣
For years, too many startups slapped “AI” on the label without really walking the talk. Now they’ve grown into shallow later-stage scaleups, built on hype rather than a sustainable business.
But the reset is happening now.
AI isn’t just accelerating new builders in the market — it’s clearing out the old noise. It’s exposing weak products and bad companies. Faster than ever.
It’s making space for new, smaller, leaner teams to build AI natively from the get-go and outpace heavily funded giants in no time.
AI isn’t just making building easier. It’s making BS detection faster 🫡
I have American Partners who think AI is going to make them millions you are showing the danger of Hype. American get hyped easily.