# AI failures expose the risks facing ambitious projects and startups

- URL: https://talkfuse.com/story/the-ai-graveyard-a-running-list-of-projects-and-startups-that-didnt-make-it-3/
- Published: 2026-11-14T17:30:00+00:00
- Updated: 2026-11-15T05:48:50+00:00
- Original publisher: TechCrunch
- Original article: https://techcrunch.com/2026/11/14/the-ai-graveyard-a-running-list-of-projects-and-startups-that-didnt-make-it/
- Topics: AI, Business, Companies, Software, Technology

## Key points

- About 42% of corporate AI initiatives are abandoned.
- OpenAI and Apple have faced setbacks with AI products.
- Character.ai filed for bankruptcy after legal and operational difficulties.

## Summary

The article surveys AI products and ventures that have shut down, changed direction or failed to meet expectations, arguing that their setbacks offer lessons for an industry facing high failure rates. The examples show that even major technology companies can misjudge user needs, struggle with technical delivery or decide that separate products work better as features within a larger service.

S&P Global Market Intelligence estimates that about 42% of corporate AI initiatives are abandoned. OpenAI reversed a ChatGPT redesign after users criticised its complexity, while it folded some standalone tools into ChatGPT and shut down its Sora video platform in March 2026. Apple’s promised AI-powered Siri was repeatedly delayed, contributing to a $250 million settlement over iPhone 16 marketing claims. Character.ai, which raised $150 million at a $1 billion valuation, filed for bankruptcy after legal, regulatory and operational difficulties; Google had earlier paid a reported $2.7 billion to license its technology and bring back its founders.

---
Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.