Microsoft backs British AI start-up despite row over blocked Activision deal
Microsoft has confirmed it bought a stake in a British artificial intelligence (AI) company just days after claiming the country was an unattractive place to do business.
The $2 trillion US company has invested in Builder.ai, a London-headquartered company developing tools to automate app design and coding.
News of the investment comes after Microsoft executives warned last week that Britain was becoming hostile to enterprise.
Microsoft president Brad Smith said the EU was a “more attractive place to start a business” after Britain’s competition watchdog decided to block its takeover of gaming giant Activision.
Founded in 2016, Builder.ai’s tools break down app development into building blocks, so non-technical businesses can put together apps with the assistance of automation tools and advice from professional engineers.
Microsoft has ploughed billions of dollars into a new wave of artificial intelligence technology, including a $10bn deal with Silicon Valley company OpenAI, which developed the ChatGPT chatbot.
The tech giant has also backed several UK artificial intelligence start-ups, including joining a £7m investment in data start-up Hazy earlier this year.
Last year it invested in UK driverless car company Wayve and it has also backed AI chip company Graphcore.
The size of the investment in Builder.ai was not disclosed.
The start-up has already raised a total of $195m from previous investors including New York fund Insight Partners and European venture firm Lakestar.
Organisations that have worked with Builder.ai to create apps include the BBC.
Officials are concerned that Britain has struggled to grow its technology businesses to a size that can rival global players.
A lack of scale leaves start-ups vulnerable to being snapped up by overseas tech giants or under pressure from US investors to relocate overseas.
Jeremy Hunt, the Chancellor, has vowed to turn Britain into a “science and technology superpower” and pledged £1bn for investments in new AI technologies and computer power.
As part of Builder.ai’s deal with Microsoft, its tools will be available through the tech giant’s Azure cloud computing service and will integrate with tools developed by OpenAI.
Microsoft has been infusing its technology products with chatbot technology from OpenAI, which can provide human-like answers to questions and prompts.
It has embedded the chatbot technology in its Bing search engine plans to add it to Word and Excel as a digital assistant and editor
Builder.ai allows companies to quickly build web and mobile apps combining AI software with professional developers.
Customers can interact with an “AI product manager”, called Natasha, to bring their ideas to life without the need for technical or coding expertise.
The company has teams in London, New Delhi, Singapore, the US and Dubai.
Sachin Dev Duggal, founder of Builder.ai, said: “We are ecstatic that the world’s largest software company chose Builder.ai as a collaborator.”
