Relay, an AI-driven workflow automation tool designed as an alternative to Zapier, ceased operations entirely in August. The platform enabled users to automate email and task workflows utilizing AI agents; however, as larger entities like OpenAI and Google integrated similar automation features directly into their own offerings, the five-year-old Relay found it increasingly challenging to justify its existence as an independent product. Recently, the chatbot platform Character.ai also filed for bankruptcy just five years post-launch. In addition to Character.ai and Relay, numerous AI initiatives fail to endure even within the companies that develop them. According to hinews, approximately 42% of AI projects are ultimately abandoned by their corporate creators. The reasons for these failures are diverse: inadequate funding, technical hurdles, fierce competition, challenges in scaling, or simply low user demand. This has resulted in an expanding graveyard of AI ventures. Below is an overview of some of the most notable AI products, startups, launches, and investments that have either shut down, pivoted, or significantly missed expectations. Rather than a mere scorecard of failures, consider it a record of lessons that these endeavors may impart to the broader industry.
Even the most prominent players are not exempt from setbacks. OpenAI, recognized as one of the most valuable private companies globally, has experienced its share of casualties and miscalculations. A recent example includes its effort to transform ChatGPT into a more comprehensive “super app.” On July 9, OpenAI updated the application to amalgamate various experiences, including distinct “Chat,” “Codex,” and “Work” modes, while rebranding the traditional version as “ChatGPT Classic.” The redesign quickly faced backlash from users who found the new interface confusing and cluttered, prompting OpenAI to revert the changes shortly thereafter, restoring the familiar ChatGPT interface. This was not the only instance of OpenAI attempting to consolidate its offerings. The company has also discontinued several standalone applications, integrating their features directly into ChatGPT—a strategy that has proven more successful than the redesign. ChatGPT Atlas, an AI-driven web browser, was discontinued on August 9, less than a year after its launch, with its most valuable features incorporated into ChatGPT. Similarly, the company has absorbed the functionalities of Operator, an AI agent capable of browsing the web and completing tasks on behalf of users, and has increasingly integrated image generation into ChatGPT, diminishing the role of DALL-E as a separate platform for image creation. Additionally, the video-sharing platform Sora, which faced high operational costs and challenges in user retention, was shut down in March 2026.
When Apple introduced Apple Intelligence in 2024, an enhanced version of Siri was prominently featured. The announcement promised a Siri capable of understanding context, seamlessly navigating across applications, and efficiently completing tasks. However, Apple faced multiple delays in the release of the new Siri, citing engineering issues and bugs as reasons. These postponements ultimately contributed to a $250 million settlement over allegations regarding the marketing of the AI capabilities of the iPhone 16. Siri AI finally debuted in the iOS 27 beta this past July, with the new AI-enhanced version being rolled out to English-speaking users first this month, while support for additional languages is anticipated to follow.
At its 2024 Build developer conference, Microsoft unveiled its Recall feature, touted as an AI-powered “photographic memory” for Windows PCs, which would periodically capture screenshots of user activities for later retrieval. Unsurprisingly, the announcement sparked immediate concerns regarding privacy and security. Critics contended that Recall could create a searchable archive of sensitive information, including passwords, private messages, and financial details. Microsoft postponed the feature for nearly a year, allowing the company to reassess its security and privacy measures. Even after a redesign, the controversy persists. A cybersecurity researcher recently developed a tool capable of extracting and displaying data captured by Recall, reigniting questions about whether Microsoft has adequately addressed the underlying issues.
Notion Mail was launched in April 2025 as an AI-centric email product aimed at assisting users in organizing and automating their inboxes. However, the company observed that users were opting for separate AI agents to manage their email instead. Consequently, Notion Mail is slated for closure on September 22.
The Humane AI Pin is perhaps one of the most notable failures in AI hardware. Intended to deliver AI capabilities through a wearable device rather than a conventional smartphone, Humane secured $230 million from investors and attracted considerable attention. However, the product faced significant performance challenges, exacerbated when Humane advised customers to cease using its charging case due to a potential fire hazard. The company ultimately shut down its AI Pin division in February 2025, with most of its assets acquired by HP for $116 million.
The Rabbit R1 was another highly anticipated AI device. Unveiled at CES in January 2024, this AI companion was designed to perform tasks on behalf of its owner. Rabbit claimed to have sold 100,000 units shortly after its launch. However, strong initial sales did not equate to a robust product. Early reviews characterized the device as unfinished, with unreliable performance and a limited array of useful integrations. Nevertheless, the company has persisted, continuing to update the R1 and repositioning it as a computer controller capable of executing agentic tasks. It has also recently announced a new hardware initiative, dubbed “Project Cyberdeck,” aimed at creating a portable device designed for vibe-coding.
Huxe was an AI audio application developed by former creators of Google’s NotebookLM, transforming written content into conversational, podcast-style audio. The company ceased operations in May 2026, partly due to larger platforms beginning to provide similar experiences to expansive existing audiences. For example, Spotify has been enhancing its own AI-driven audio tools.
Yupp was an intriguing AI product: a complimentary platform that allowed users to compare responses from hundreds of AI models side by side. Users could also vote on responses and earn cryptocurrency through the platform. At its peak, Yupp enabled users to test over 800 models, including those from companies such as OpenAI, Google, and Anthropic. However, according to its founders, Yupp never achieved a sufficiently strong product-market fit to endure. The platform was shut down in March 2026.
Figgs AI operated from 2023 to 2024, allowing users to create and engage with customizable AI characters for role-playing and storytelling. The platform reportedly attracted over 1 million users, but its developers indicated that maintaining the service for free became too costly, leading to its closure.
