Builder.ai, a London-based AI startup that helps people build apps without needing technical skills, is reportedly heading for bankruptcy. According to a Bloomberg report, the company worked with Indian social media startup VerSe Innovation to fake business deals and inflate their sales numbers. They allegedly sent each other invoices for similar amounts without actually delivering any real products or services — a tactic known as \round-tripping.\

Earlier this year, Builder.ai said it planned to file for bankruptcy after its lenders took control of most of its money. At one point, the company was valued at $1.5 billion and was seen as one of the rising stars in the AI world. However, its downfall highlights the dangers of blindly investing in AI startups during the excitement that followed the launch of ChatGPT in 2022.