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The AI graveyard: a running list of projects and startups that didn’t make it

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Why This Matters

This story highlights a growing 'AI graveyard' of startups and corporate initiatives that failed to survive, underscoring how quickly the AI boom can turn into a bust for products that lack differentiation from larger platforms. It matters because it shows that even well-funded companies like OpenAI struggle with product-market fit, and roughly 42% of corporate AI projects are abandoned, signaling real risk behind the AI hype cycle.

Key Takeaways

Relay, an AI-powered workflow automation tool built as an alternative to Zapier, shut down entirely on Monday. The product let users automate email and task workflows using AI agents, but as OpenAI, Google, and other larger platforms built similar automation directly into their own tools, five-year-old Relay struggled to hold on to a reason to exist as a stand-alone product.

Relay — a startup outpaced by bigger platforms — is one version of the story playing out right now. But plenty of AI bets never even survive inside the companies that build them. According to S&P Global Market Intelligence, about 42% of AI initiatives are ultimately abandoned by their corporate parents. The reasons vary: insufficient funding, technical challenges, competition, difficulty scaling, or just weak user demand.

The result is a growing AI graveyard. Below is a look at some of the most notable AI products, startups, launches, and bets that have shut down, pivoted, or significantly missed expectations. Think of it less as a scorecard of flops than as a record of what these attempts can (hopefully) teach the rest of the industry.

OpenAI has taken several stumbles

Image Credits:SeongJoon Cho/Bloomberg / Getty Images

Even the biggest players aren’t immune. OpenAI, one of the most valuable private companies in the world, has had its own share of casualties and missteps. One of the more recent examples was its attempt to turn ChatGPT into a broader “super app.” On July 9, OpenAI updated the app to combine several experiences, including separate “Chat,” “Codex,” and “Work” modes, while renaming the traditional, familiar version “ChatGPT Classic.”

The redesign quickly drew criticism from users who found the new interface confusing and cluttered, and OpenAI rolled back the change soon after, bringing the familiar ChatGPT interface back.

That wasn’t OpenAI’s only attempt to pull everything under one roof. The company has also shut down several stand-alone apps and folded their features directly into ChatGPT — a strategy that’s worked out better than the redesign did. ChatGPT Atlas, a stand-alone AI-powered web browser, lasted less than a year before being discontinued on August 9, with its most useful features absorbed into ChatGPT.

The company did the same thing with Operator, an AI agent that could browse the web and complete tasks on a user’s behalf, and OpenAI has increasingly built image generation directly into ChatGPT, shrinking the role of DALL-E as its own separate destination for creating images.

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