Builder.ai, a UK-based AI software startup backed by Microsoft and the Qatar Investment Authority (QIA), has filed for bankruptcy and entered insolvency proceedings. The company reportedly burned through $500,000 daily and owes $115 million to Microsoft and Amazon. Despite raising approximately $500 million, Builder.ai faced accusations of "AI washing," allegedly overstating its AI capabilities by relying heavily on Indian coders and inflating sales projections. The startup, once considered a leading no-code AI platform, is expected to lay off a substantial portion of its workforce, although the exact number of affected employees has not been disclosed. The collapse highlights risks associated with rapid investment in AI startups amid a broader industry downturn.