ETtech Explainer: Why AI startup Builder. ai is filing for bankruptcy despite backing from Microsoft and QIA

Builder.ai, the British artificial intelligence startup backed by Microsoft and the Qatar Investment Authority (QIA), is filing for bankruptcy after a key lender seized most of its cash reserves, the company’s CEO said.

What triggered the bankruptcy?

Viola Credit, which extended $50 million in debt to the company last year, withdrew $37 million from Builder.ai’s accounts, leaving it with just $5 million, chief executive Manpreet Ratia said in an interview on Tuesday, according to Bloomberg. Ratia did not specify the reason for the seizure.The…