Microsoft makes strategic investment into Builder.ai, integrates its services into Teams

Builder.ai tapped into a new wave of businesses wanting their own native apps with a turnkey approach, accelerated by the rapid digitization of life during the pandemic. That led to led to a $100 million Series C funding round last year led by Insight Partners, taking the company’s total funding to $195 million.

It’s now landed a strategic collaboration with Microsoft, which includes an undisclosed equity investment in the startup. TechCrunch’s source’s indicate the investment was “significant”, though we couldn’t get anything more than that.

The collaboration will mean the two companies collaborating on AI solutions. Builder’s “Natasha” AI will be available to users of Teams, and made available when they are looking to build apps and software. Microsoft’s Q2 results showed Teams has hit more than 280 million monthly active users.

Builder.ai’s CEO Sachin Dev Duggal said in a statement: “From my first meeting with Microsoft to the moment we agreed to collaborate more strategically, one thing has been really clear-Microsoft’s commitment to helping everyone unlock their true potential.”

There will also be integrations across Azure OpenAI Service and other Azure Cognitive Services with Builder.ai’s software assembly line and adoption of the Microsoft Cloud and AI, alongside partnerships across the Microsoft Developer Platforms.

“We see Builder.ai creating an entirely new category that empowers everyone to be a developer and our new, deeper collaboration fuelled by Azure AI will bring the combined power of both companies to businesses around the world,” added Jon Tinter, Corporate Vice President, Business Development, Microsoft.