The AI Graveyard: A Running List of Projects and Startups That Didn’t Make It
AI companies and major technology firms have seen a growing number of products shut down, pivot, or fall short of expectations. Around 42% of corporate AI initiatives are eventually abandoned, according to S&P Global Market Intelligence. Common challenges include limited funding, technical obstacles, tough competition, difficulties scaling, and weak demand.
Here are some notable examples.
OpenAI’s product shake-ups
OpenAI’s attempt to reshape ChatGPT as a “super app” drew criticism from users who found its new modes and interface confusing. The company soon restored the familiar ChatGPT experience.
Other products have been folded into ChatGPT. The stand-alone AI browser ChatGPT Atlas was discontinued, while the Operator agent’s features and image-generation capabilities have increasingly been integrated into the main app. OpenAI’s video-sharing service Sora also shut down in March 2026 after struggling with operating costs and user retention.
Apple’s delayed Siri overhaul
When Apple introduced Apple Intelligence in 2024, it highlighted a more capable Siri that could understand context across apps and carry out tasks. But the updated assistant faced repeated delays, reportedly due to engineering problems and bugs.
The delays led to a $250 million settlement over claims about how Apple marketed the iPhone 16’s AI capabilities. A new Siri appeared in the iOS 27 beta in July 2026, with its rollout beginning with English-language users.
Microsoft Recall’s privacy concerns
Microsoft presented Recall as a kind of “photographic memory” for Windows PCs. The feature periodically captures screenshots so users can search their past activity.
The idea prompted privacy and security concerns because the screenshots could contain sensitive information. Microsoft delayed the launch and reworked its protections, but questions remain after a researcher demonstrated a way to extract and display data Recall had captured.
Notion Mail
Notion Mail launched in 2025 as an AI-powered inbox intended to organize and automate email. But users increasingly relied on separate AI agents for email tasks, and Notion scheduled the service to shut down on September 22, 2026.
Humane AI Pin
The Humane AI Pin aimed to bring AI features to a wearable device instead of a smartphone. Despite raising $230 million and attracting considerable attention, the product struggled with performance. Humane also warned customers to stop using its charging case over a potential fire risk.
The company closed the AI Pin business in February 2025. HP acquired most of its assets for $116 million.
Rabbit R1
The Rabbit R1, unveiled at CES in 2024, was designed to carry out tasks for users. The company said it sold 100,000 units shortly after launch, but early reviews criticized the device as unfinished, unreliable, and limited in useful integrations.
Rabbit has continued updating the R1 and now positions it as a computer controller for agentic tasks. It has also announced a separate portable hardware project called Project Cyberdeck.
Huxe
Huxe turned written material into conversational, podcast-style audio. The app was created by former developers of Google’s NotebookLM, but it shut down in May 2026 as larger platforms began offering similar features to much bigger audiences.
Yupp
Yupp let users compare responses from hundreds of AI models, vote on the results, and earn cryptocurrency. Despite offering access to more than 800 models, the service’s founders said it never found strong enough product-market fit. It shut down in March 2026.
Figgs AI
Figgs AI let users create and chat with customizable characters for role-play and storytelling. The platform reportedly attracted more than a million users, but its developers said the cost of keeping the service free became unsustainable. It closed in 2024.
Character.ai
Character.ai became popular for customizable chatbot conversations, including bots based on fictional characters and celebrities. The company raised $150 million in 2023 at a $1 billion valuation. The following year, Google reportedly paid $2.7 billion to license its technology and bring its founders back into the company’s orbit.
Character.ai later faced lawsuits from families who alleged its chatbots contributed to teen suicides and self-harm, as well as a cease-and-desist letter from Disney over the use of its characters. The company restricted open-ended chats for under-18 users and agreed to settle several lawsuits with Google in early 2026.
In October, Character.ai filed for bankruptcy, citing legal, regulatory, and operational pressures. The app remains available during the proceedings. Disney has made an initial $20 million offer for a license to some of its intellectual property, and the sale is expected to conclude in late November or early December.
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