Microsoft-Backed Builder.ai Set for Bankruptcy After Cash Seized

Builder.ai, the British artificial intelligence startup backed by Microsoft Corp. and the Qatar Investment Authority, is filing for bankruptcy after the chief executive officer said a major creditor had seized most of its cash.

Viola Credit, which provided $50 million in debt to the software firm last year, has seized $37 million from Builder.ai’s accounts, leaving the company with $5 million, Builder.ai Chief Executive Officer Manpreet Ratia said in an interview Tuesday, without giving a clear reason for the seizure. Viola didn’t immediately respond to a request for comment left after business hours.

The company, which operates in ...