The AI graveyard: a running list of projects and startups that didn’t make it
The artificial intelligence industry is experiencing a wave of shutdowns, product pivots, and abandoned corporate bets, according to a TechCrunch report documenting failed startups and features.
The artificial intelligence industry is experiencing a wave of shutdowns, product pivots, and abandoned corporate bets, according to a TechCrunch report documenting failed startups and features. Data from S&P Global Market Intelligence shows that corporate parents ultimately abandon about 42% of AI initiatives due to insufficient funding, technical hurdles, weak user demand, or fierce competition.
Smaller startups and prominent independent products alike have fallen victim to these pressures. Relay, a five-year-old workflow automation tool, shut down in August after major tech platforms built similar capabilities directly into their own systems. Similarly, chatbot platform Character.ai filed for bankruptcy five years after launch, while the AI audio app Huxe closed in May 2026 as larger competitors expanded into conversational audio.
Even the largest technology companies have faced significant stumbles and cancellations. OpenAI discontinued its standalone ChatGPT Atlas web browser in August 2025 and shut down its Sora video-sharing platform in March 2026 due to high operating costs and retention challenges. Meanwhile, hardware ventures struggled heavily, leading Humane to shut down its battery-fire-plagued AI Pin business in February 2025 before HP acquired most of its assets.
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Original publication: 25 October 2026 00:30
