The AI graveyard: a running list of projects and startups that didn’t make it
From Apple's repeatedly delayed Siri AI to OpenAI's messy "super app" launch, here's a look at the AI projects that shut down or missed expectations.
Key points
- Relay shut down in August as larger platforms built similar automation into their own tools.
- About 42% of AI initiatives are ultimately abandoned by their corporate parents, per S&P Global Market Intelligence.
- Character.ai filed for bankruptcy in early October, citing legal, regulatory and operational headwinds.
A growing number of AI products and startups have shut down, pivoted or fallen short of expectations, according to a TechCrunch roundup of notable failures. The list includes Relay, an AI workflow automation tool built as an alternative to Zapier, which shut down entirely in August after larger platforms added similar automation to their own tools.
The article also cites S&P Global Market Intelligence data showing that about 42% of AI initiatives are ultimately abandoned by their corporate parents. Reasons given include insufficient funding, technical challenges, competition, difficulty scaling and weak user demand.
Big players and their setbacks
OpenAI has had its own missteps. On July 9, it updated ChatGPT to combine separate Chat, Codex and Work modes and renamed the traditional version ChatGPT Classic; the redesign drew criticism and was rolled back soon after. OpenAI also discontinued ChatGPT Atlas on August 9, folding its features into ChatGPT, and shut down its video-sharing platform Sora in March 2026 after struggles with high operating costs and user retention.
Apple repeatedly delayed its improved Siri, which contributed to a $250 million settlement over how it marketed the AI capabilities of the iPhone 16. The new AI-powered Siri appeared in the iOS 27 beta in July and is rolling out to English-language users this month. Microsoft's Recall feature drew a privacy backlash and was delayed for nearly a year, and a researcher recently built a tool that could extract data Recall had captured.
The result is a growing AI graveyard.
— TechCrunch
Hardware and app shutdowns
Humane shut down its AI Pin business in February 2025, with most assets acquired by HP for $116 million. Rabbit's R1 drew strong early sales but reviews described it as unfinished; the company continues updating it. Notion Mail is scheduled to shut down on September 22, Huxe shut down in May 2026, Yupp shut down in March 2026 and Figgs AI closed after free operation became too costly.
Character.ai, founded in 2021, raised $150 million at a $1 billion valuation in 2023 before Google paid a reported $2.7 billion to license its technology and bring its founders back. After lawsuits and a Disney cease-and-desist letter, it barred under-18 users from open-ended chats and settled several suits in early 2026. It filed for bankruptcy in early October, with Disney now the opening bidder at $20 million for a license to some of its intellectual property.
