The AI graveyard: a running list of projects and startups that didn’t make it
techcrunch ·
A recent TechCrunch article highlights the growing "AI graveyard," noting that approximately 42% of corporate AI initiatives are abandoned due to issues like insufficient funding, technical challenges, or weak user demand. Notable startup failures include Relay, which shut down after larger platforms integrated similar automation tools, and Character.ai, which filed for bankruptcy just five years after launch. Major tech companies have also faced significant setbacks; OpenAI discontinued its standalone ChatGPT Atlas browser and video platform Sora, while rolling back a confusing "super app" redesign. Microsoft’s Recall feature faced intense privacy backlash and security concerns, leading to delays and ongoing criticism despite redesigns. In the hardware sector, Humane’s AI Pin failed due to performance issues and battery risks, resulting in the company shutting down its business and selling assets to HP. Other discontinued products include Notion Mail, which was replaced by third-party agents, and Yupp, an AI model comparison tool that lacked sufficient product-market fit. These examples illustrate the high failure rate in the current AI landscape, serving as cautionary tales for the industry.
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