Sachin Dev Duggal, known in the startup world as Builder.ai’s flamboyant “chief wizard,” has once again captured attention. Just months after the spectacular collapse of Builder.ai, Duggal has begun briefing investors about a new venture. His move comes amid controversy, financial turmoil, and unresolved questions about his leadership at Builder.ai. Despite the storm surrounding his previous company, Duggal appears ready to pursue another ambitious idea in the artificial intelligence space.
From Billion-Dollar Unicorn to Bankruptcy
Builder.ai, once one of the UK’s most celebrated startups, positioned itself as the “assembly line for software.” The company promised small businesses and enterprises that they could design, build, and run applications quickly, without needing deep technical knowledge. Investors rallied behind that vision. Backers included heavyweights such as Microsoft, Insight Partners, and Jungle Ventures. At its peak, the company boasted a valuation of more than $1.5 billion.
The promise, however, fell apart. Reports revealed that Builder.ai exaggerated its revenues, overstated its AI capabilities, and relied heavily on human engineers in India to deliver much of the work. Customers who expected fully automated AI systems discovered that the process looked much more like traditional outsourcing dressed up as cutting-edge innovation.
By mid-2025, Builder.ai faced lawsuits, creditor actions, and growing media scrutiny. The company defaulted on payments, restated its 2023 revenue figures downward, and admitted to “past problems” in its reporting. Creditors seized funds, and insolvency proceedings began across several jurisdictions. Builder.ai’s dream as a unicorn collapsed in less than two years, shocking the tech ecosystem and damaging investor trust.
Duggal’s Controversial Role
Sachin Dev Duggal always described himself as more than a traditional founder. He embraced the title of “chief wizard,” cultivated a larger-than-life persona, and spoke about democratizing software development through AI. Yet critics argued that Duggal blurred the line between marketing bravado and misleading claims.
Employees reported long hours and pressure to deliver projects that could support the company’s ambitious promises. Some accused leadership of engaging in “AI washing”—branding manual engineering work as artificial intelligence innovation. Investigations highlighted revenue “round-tripping,” where money appeared to circulate between entities in ways that artificially boosted financials.
In early 2025, Duggal stepped down as CEO but kept the “chief wizard” title and a board seat. His resignation came after Microsoft and other investors began demanding accountability. Even after leaving the top role, Duggal hinted that he planned to reemerge with fresh ideas.
The New Venture: SecondBrain
Duggal has started presenting a new startup concept, reportedly under the working name “SecondBrain.” This time, he emphasizes a focus on neurosymbolic AI—an approach that combines neural networks with symbolic reasoning. Unlike pure deep learning systems, neurosymbolic AI attempts to blend pattern recognition with structured logic, giving machines the ability to reason more like humans.
In Duggal’s pitch, SecondBrain would move away from simply building software applications and instead create intelligent systems capable of supporting decision-making, learning, and reasoning. He claims that this new direction avoids the pitfalls of Builder.ai and focuses on long-term breakthroughs rather than marketing hype.
Investors who have listened to his presentations describe the concept as ambitious but vague. Duggal denies that SecondBrain intends to replicate Builder.ai’s model of software creation. Instead, he frames it as a leap forward in artificial intelligence research and commercialization.
Investor Reactions
Investor sentiment remains split. Some see Duggal as a visionary founder who still holds the charisma to attract capital. They argue that Silicon Valley often forgives bold entrepreneurs who fail, as long as they return with bigger ideas. Duggal’s track record of raising hundreds of millions of dollars shows that he understands how to sell a vision, even if Builder.ai’s execution faltered.
Others express deep skepticism. They point to unresolved allegations of financial manipulation, the insolvency of Builder.ai, and the fact that creditors lost significant sums. To them, Duggal represents the darker side of the startup boom—where flashy storytelling overshadows transparency and accountability. For many, the question remains: should investors trust him again so soon after such a public collapse?
The Shadow of Builder.ai
Duggal cannot easily separate his new project from Builder.ai’s legacy. Even as he courts new backers, insolvency administrators continue to assess Builder.ai’s assets. Reports suggest that Duggal has explored buying back parts of Builder.ai in a “pre-packaged” deal, effectively regaining control of some of the company’s technology at a lower price after creditors seized it.
Critics argue that such a maneuver allows him to escape accountability while benefiting from the wreckage. Supporters counter that Duggal understands the technology better than anyone else and could salvage value for customers and investors through a buyback. Either way, the shadow of Builder.ai looms heavily over his new initiative.
The Larger Lesson on Startup Hype
The story highlights deeper lessons about the startup ecosystem. Builder.ai thrived in an environment where investors chased bold visions of AI automation without demanding rigorous evidence. Marketing slogans like “assembly line for software” sounded transformative, and in the heat of unicorn valuations, few questioned the underlying model.
The collapse serves as a warning about “AI washing.” Many startups exaggerate their use of artificial intelligence to attract capital. They claim that machines drive processes that still depend heavily on human labor. Without strong due diligence, investors and customers risk believing in technology that doesn’t yet exist.
Duggal’s rapid return with SecondBrain demonstrates another truth: charismatic founders often receive multiple chances, even after controversy. Silicon Valley rewards boldness and forgives failure, especially when new ideas promise breakthroughs in a competitive market. But as scrutiny of AI companies increases, regulators and investors may demand stricter oversight before betting on personalities over substance.
Can Duggal Succeed Again?
Duggal faces an uphill battle. He must rebuild trust, differentiate his new company from Builder.ai, and prove that SecondBrain can deliver real technology rather than marketing illusions. Neurosymbolic AI offers intriguing potential, but it remains an emerging field. Many leading research labs struggle to combine neural and symbolic approaches effectively.
If Duggal succeeds, he could reshape perceptions of AI innovation and rehabilitate his reputation. If he fails again, investors may grow less forgiving, and his credibility could diminish permanently.
The world of startups thrives on reinvention. Duggal has reinvented himself once more, moving from “chief wizard” of a failed unicorn to founder of a new frontier in AI. Whether he rises again or becomes a cautionary tale depends on how much substance lies behind the vision of SecondBrain.
Also Read – Builder.ai: How a Promising AI Startup Collapsed