The AI graveyard: a look at failed projects and startups

Relay, an AI-powered workflow automation tool, shut down in August 2026, struggling to compete with larger platforms like OpenAI and Google. Character.ai, a chatbot platform, filed for bankruptcy five years after its launch. S&P Global Market Intelligence reported that 42% of AI initiatives are abandoned by their corporate parents, citing reasons such as insufficient funding, technical challenges, and weak user demand. OpenAI faced its own setbacks, including the failed attempt to turn ChatGPT into a 'super app' and the shutdown of ChatGPT Atlas and Operator. The company also discontinued Sora, its video-sharing platform, in March 2026. Apple delayed its improved Siri, leading to a $250 million settlement, while Microsoft’s Recall feature faced privacy concerns and ongoing security issues. Notion Mail, launched in April 2025, is set to shut down on September 22, 2026. The Humane AI Pin, a wearable AI device, shut down in February 2025 after performance issues and safety concerns. The Rabbit R1, an AI companion device, faced criticism for its unreliable performance despite initial sales of 100,000 units.