No Funding Winter for AI as Builder.ai Raised $250 Million in Series D

Builder.ai – an AI startup that helps those without any coding knowledge build applications – has raised $250 million in its Series D funding led by Qatar Investment Authority (QIA).

Builder.ai makes what’s popularly known as “no-code” and “low-code” platforms that help tech novices build applications.

While many startups are facing what’s dubbed a “funding winter” AI companies have been able to raise funds much more easily.

Notably, earlier this month only, Microsoft invested in Builder.ai. Microsoft has also committed billions of dollars to OpenAI – the parent company of ChatGPT.

AI stocks have seen upwards momentum this year and Global X Robotics & Artificial Intelligence ETF is up 30% for the year, outperforming the S&P 500 – while C3.ai – which is among the rare pure-play AI companies up 151% YTD.

Sensing the opportunity in generative AI, Roundhill Investments launched the Generative AI & Technology ETF (NYSE: CHAT) last week.

That said, many pure-play AI companies, including ChatGPT, are startups and are not yet listed.

Meanwhile, with the Series D funding, Builder.ai has raised $450 million since it was founded by Sachin Dev Duggal in 2016. While announcing the funding, the company said that its valuation has increased by up to 1.8x, without providing the absolutes.

The company said, that “the latest round of capital will fuel the company’s continued industry leadership and innovation pipeline allowing further investments in talent, partnerships, and technology.”

Builder.ai Raised $250 Million in Series D Funding Round

It added, “Continued investor support – combined with strategic partnerships, customer tailwinds, and acclaimed industry innovation – helped drive the company’s momentum with 2.3x revenue growth and over 40,000 features deployed to customers within the last year.”

Thrilled to announce our $250M Series D led by QIA, bringing our total funding to $450M

We're grateful to our investors, amazing customers, innovative partners, and the entire Builder community. Together, we're shaping a limitless future: https://t.co/G94MxkAcvv ❤️ pic.twitter.com/wELPirJ78H

— Builder.ai (@Builderai) May 23, 2023

Notably, countries in the Middle East have been looking to invest in AI startups and last year Saudi Arabia’s sovereign wealth fund announced a $776 million investment in a joint venture with China’s SenseTime.

The fund has also invested in a joint venture with Foxconn to produce electric cars in the kingdom.

Taking yet another step towards the modernization of its society, Saudi Arabia recently sent the first Arab woman to space.

In the meantime, Ahmed Ali Al-Hammadi, CIO for Europe, Türkiye, and Russia at QIA, spoke about the Builder.ai investment, saying, “QIA is thrilled to partner with the leader in this field. We believe that Builder.ai’s creative technology and established methods set the company up for significant growth ahead.”

He added, “This investment is aligned with QIA’s strategy of supporting innovative companies shaping the future of the global economy.”

Countries are Looking to Regulate AI

While AI companies attracted $5.4 billion in funding in Q1 2023, regulators are wary of the risks associated with the technology.

In yet another case of how AI can be used to disseminate fake news, the image of an explosion at the Pentagon circulated online yesterday. The image was apparently made using AI and such incidents would only strengthen the calls to regulate the technology.

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