The controversial founder and former ‘chief wizard’ of Builder.ai is reportedly preparing to launch a new AI venture, according to inside sources. 

Sachin Dev Duggal left his position as CEO at the once-unicorn in March and, just two months later, the firm went into bankruptcy amid a raft of evidence that found its Natasha ‘neural network’ was actually 700 Indian coders.

It was once regarded as one of the UK’s most promising AI startups, reaching a valuation of $1.5 billion in 2023, but faced accusations of overstated sales and revenue projections.

Builder.ai entered insolvency proceedings in May after Duggal was replaced by Manpreet Ratia, a managing partner at Asia-focused investor Jungle Ventures.

A 2024 report in the Financial Times included testimony from former employees complaining at Duggal’s leadership style, company culture and its ability to deliver on time.

Lawyers told the FT that cases of unhappy customers cited in the report were ‘the result of unforeseen technical challenges or due to a customer pausing their project’.

The FT also reported that in 2023 the Indian Directorate of Enforcement had named Duggal as a suspect in a warrant application related to a money-laundering investigation into Videocon, an Indian firm that went bankrupt in 2018. 

Builder.ai scandal: How ‘chief wizard’ Sachin Dev Duggal was outed as another Oz

It said Duggal did not appear following a 2022 summons to explain alleged ‘unexplained transactions’ between Builder.ai and Videocon. 

After the directorate changed his designation from ‘witness’ to ‘suspect’, it obtained the warrant from a Delhi court.

Duggal is appealing against the warrant and denies any wrongdoing.

Since leaving Builder.ai, Duggal has spoken with investors about a fresh business idea, three people familiar with the talks said. 

One source noted that the venture will be named SecondBrain.

Duggal confirmed to Sifted that he is pursuing a project centred on ‘neurosymbolic’ AI,  while another wrongly claimed that the startup’s purpose would be to support business in using AI for software development.

“My early work in neurosymbolic AI is a spectrum away from this,” Duggal told Sifted.

If launched, SecondBrain would mark Duggal’s fourth entrepreneurial venture. 

His previous companies include cloud-based computer streaming service Nivio and Shoto, a San Francisco-based photo sharing platform.

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