TechCrunch tracks AI products and startups that shut down or fell short

In short: A growing number of AI products and startups are shutting down or getting scaled back, and TechCrunch has published a running list of notable examples.

What's going on

TechCrunch’s new “AI graveyard” roundup pulls together AI projects that have closed, been abandoned, or failed to meet expectations. It includes both startups and well known tech companies, which is a reminder that even big names can misjudge what people want or what is practical to build.

Some of the examples are recent. Character.ai, a chatbot app where users could talk to made up characters, filed for bankruptcy about five years after launching. Privacy focused assistant Ollie also announced it was shutting down, with its CEO citing trouble standing out, slow growth, and not raising enough money.

The list also points to a broader pattern inside large companies. S&P Global Market Intelligence estimates about 42% of corporate AI efforts are eventually abandoned. The reasons vary, including not enough funding, technical problems, tough competition, or simply not enough customers.

TechCrunch highlights several high profile stumbles. OpenAI tried to redesign ChatGPT into a “super app” (one app that does many different jobs), but users complained it was confusing, and the company rolled back the change. Apple’s upgraded Siri AI was delayed multiple times and later appeared in an iOS 27 test version, after a $250 million settlement tied to marketing claims.

What to watch

Expect more AI tools to disappear, or to be folded into bigger products, as large companies copy features and smaller teams run out of time or money. For everyday users, this is a useful warning to save important data and have a backup plan if a favorite AI app shuts down.

Source: TechCrunch AI