U.S. prosecutors have subpoenaed Builder.ai’s former CFO as part of an ongoing investigation

U.S. prosecutors are currently investigating the collapse of Builder.ai, a Microsoft-backed startup. 

Builder.ai’s former chief financial officer has been summoned by U.S. prosecutors and is expected to appear before a grand jury to assist the ongoing investigation into the AI firm’s collapse. 

U.S. prosecutors seek answers after AI startup’s sudden fall

U.S. authorities have issued a subpoena signed by Jay Clayton, the U.S. attorney for the Southern District of New York, to Andres Elizondo, the former chief financial officer of Builder.ai. The summons is due to an expanding investigation into the financial collapse of the once high-flying artificial intelligence startup backed by Microsoft.

Reportedly, Elizondo was ordered to appear before a grand jury in Manhattan in September. He served as CFO between 2021 and 2023 and was approached by FBI agents in August during a flight stopover in Dallas. Lawyers for Builder.ai previously indicated he remained in his post until July of that year, and the company had yet to appoint a permanent replacement at the time of its collapse.

The agents reportedly handed him the subpoena in person. Elizondo was not considered a suspect or target in the investigation, but he has cooperated fully with authorities, according to a person familiar with the situation. 

Builder.ai, previously known as Engineer.ai, had positioned itself as a unique platform that could automate the creation of apps and websites using AI tools. Co-founded by Sachin Dev Duggal, who referred to himself as the company’s “chief wizard,” Builder.ai became one of the UK’s most celebrated tech startups, attracting investors including Microsoft and achieving a valuation of more than $1B at its peak.

However, the company collapsed into insolvency in May 2025 after an internal review uncovered potentially fabricated sales and forced a significant reduction in its reported revenues to roughly a quarter of the earlier estimates.

Builder.ai faces revenue inflation claims 

In June, Builder.ai was suspected of using a variety of methods to inflate its revenue figures, including improperly booked discounts, artificially small upfront deposits, and circular transactions with certain key customers. These findings raised questions about the company’s accounting integrity and transparency to investors.

Lawyers representing Duggal have disputed the accuracy of the allegations, arguing that neither he nor Builder.ai had misrepresented financial data. A previous legal team retained by the company similarly maintained that its sales figures had been correctly reported.

Before the company’s collapse, the U.S. attorney’s office for the Southern District of New York had already requested Builder.ai to submit a range of documents concerning its financial reporting, accounting practices, and customer relationships.

The subpoena served to Elizondo in August required him to produce communications dating back to January 2018 with individuals linked to the business, including communications with current, former, and potential creditors. It also demanded any records or correspondence relating to the accuracy of Builder.ai’s financial disclosures, including the reporting of bookings, sales, and revenue.

Reportedly, FBI agents were still accessing Builder.ai’s Google Cloud data as recently as last week.

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