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A TechCrunch rundown of AI products and startups that have shut down or flopped, from Relay to Humane AI Pin to Microsoft's Recall. The piece shows that even massive companies like OpenAI and Apple struggle to make AI bets stick, with 42% of corporate AI initiatives ultimately abandoned.
- 42% of AI initiatives launched by corporations get abandoned, with failures driven by insufficient funding, technical challenges, competition, or weak user demand
- Major tech companies including OpenAI, Apple, and Microsoft have had high-profile AI failures: OpenAI killed ChatGPT Atlas and Sora; Apple delayed Siri AI by years; Microsoft's Recall faced persistent privacy backlash even after redesign
- Smaller AI startups like Relay, Humane AI Pin, and Rabbit R1 couldn't compete when larger platforms built similar features directly into their existing products or user bases