Microsoft-Backed Builder.ai Set for Bankruptcy After Cash Seized

(Bloomberg) — Builder.ai, the British artificial intelligence startup backed by Microsoft Corp. and the Qatar Investment Authority, is filing for bankruptcy after the chief executive officer said a major creditor had seized most of its cash.

Viola Credit, which provided $50 million in debt to the software firm last year, has seized $37 million from Builder.ai’s accounts, leaving the company with $5 million, Builder.ai Chief Executive Officer Manpreet Ratia said in an interview Tuesday, without giving a clear reason for the seizure.