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London AI firm bags $250m injection led by Qatari sovereign wealth fund

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City Editor

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The ShinyHunters hacking group is reportedly demanding around £400,000 in a ransom payment to prevent the data being sold.
The ShinyHunters hacking group is reportedly demanding around £400,000 in a ransom payment to prevent the data being sold.

A London-based artificial intelligence firm has announced a $250m cash injection led by the Qatari sovereign wealth fund today as investors rush to capitalise on a boom in AI technology.

Builder.ai, which uses AI to allow businesses and people to build software, said the Qatari Investment Authority (QIA) led the fresh funding round alongside existing investors including Iconiq Capital, Jungle Ventures and Insight Partners.

Bosses said they were now eyeing a fresh wave of investment in “talent, partnerships, and technology” after already doubling its headcount from January last year.

Builder.ai declined to give a valuation figure for the firm following the fresh funding boost but City PM understands it has built on the firm’s so-called ‘unicorn’ valuation of more than $1bn.

In a statement, the QIA said Builder.ai was a “leader in the space” and was now poised for bumper growth.

“We are confident that Builder.ai’s innovative technology and proven approach positions the company for a future of substantial growth,” said Ahmed Ali Al-Hammadi, CIO for Europe, Türkiye and Russia at QIA.

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

Builder.ai founder Sachin Dev Duggal said the world is at “an incredible time in history where the very notion of software is changing”.

The London-headquartered tech outfit has opened four new offices since 2021 and now has a presence in the US, UAE, Singapore, and France. Revenues have more than doubled in the past year and it has announced major partnerships with the likes of Microsoft.

Builder.ai has now raised over $450m from investors since its foundation in 2016, with the latest round coming amid a flood of cash into AI technology triggered by the rise of ChatGPT.

Some $1.69bn was pumped into AI firms in the first three months of the year, up from just $0.73bn in the final three months of last year, according to data from investment analysis firm Pitchbook.