The AI sector is seeing a rise in discontinued projects, with S&P Global Market Intelligence reporting that 42% of corporate AI initiatives are ultimately abandoned. Reasons for failure include insufficient funding, technical challenges, and competition from larger platforms.
Relay, an automation tool, shut down in September 2026 due to competition from major platforms like OpenAI and Google. Similarly, Notion Mail will close on September 22, 2025, after users preferred third-party AI agents over the native tool.
OpenAI has discontinued several products, including the Sora video platform in March 2026 and the ChatGPT Atlas browser in August 2025. Apple faced a $250 million settlement over marketing claims regarding Siri AI, which only reached beta in July 2026.
Hardware ventures also struggled. Humane shut down its AI Pin business in February 2025 following battery fire risks, with HP acquiring assets for $116 million. Rabbit R1, despite selling 100,000 units, faced criticism for unreliable performance.
Other notable closures include the Yupp model comparison platform and Figgs AI, both of which ceased operations in 2026 due to sustainability and product-market fit issues. Microsoft also delayed its Recall feature for a year following privacy concerns.
