Microsoft-Backed AI Firm Hires Auditors After Overstating Sales

Builder.ai lowered the sales figures it provided to investors and hired auditors to examine its last two years of accounts, a major setback for the artificial intelligence startup backed by Microsoft Corp. and the Qatar Investment Authority.

The London-based company, which has raised more than $450 million, dropped its revenue estimates for the second half of 2024 by about 25% after some sales channels “did not come through,” according to Manpreet Ratia, the recently appointed chief executive.

Builder.ai confirmed the adjustment, which it began making last summer but hasn’t previously been reported, in response to questions from Bloomberg ...