AI software company Builder.ai is entering insolvency proceedings, a company spokesperson confirmed to TechCrunch.

The Microsoft-backed unicorn, which has raised more than $450 million in funding, rose to prominence for its AI-based platform that aimed to simplify the process of building apps and websites.

According to the spokesperson, Builder.ai, also known as Engineer.ai Corporation, is appointing an administrator to “manage the company’s affairs.”

“Despite the tireless efforts of our current team and exploring every possible option, the business has been unable to recover from historic challenges and past decisions that placed significant strain on its financial position,” the company said in a statement. “Our immediate priority is to support our employees, customers, and partners through this difficult time. We will work closely with the appointed administrators to ensure an orderly process and to explore all available options for parts of the business, where possible.”

Builder.ai has faced major leadership shakeups and financial issues over the past few months. In March, it was reported that the company last summer lowered its estimated revenue by 25% for the second half of 2024. In February, the company appointed a new CEO, Manpreet Ratia.

Builder.ai hired auditors to study its financials, indicating that something may have been off behind the scenes. According to Bloomberg, former employees alleged that the company had inflated sales figures by more than 20% on multiple occasions.

Before Engineer.ai largely rebranded to Builder.ai, it attracted minor scandal. Engineer.ai claimed to have built a largely automated app development platform, but the platform in truth relied heavily on human engineers, according to The Wall Street Journal.