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AI projects face 'graveyard' as startups struggle and major players stumble

AI-powered workflow tool Relay has shut down, joining a growing list of AI projects and startups that have failed or missed expectations, including initiatives from OpenAI and Apple.

  • AI workflow automation tool Relay shut down on Monday, 14 September 2026.
  • S&P Global Market Intelligence reports that approximately 42% of AI initiatives are ultimately abandoned by their corporate parents.
  • OpenAI's video-sharing platform Sora shut down in March 2026 due to high operating costs and user retention issues.

Relay, an AI-powered workflow automation tool, ceased operations on Monday. The five-year-old startup, designed as an alternative to Zapier, struggled to compete as larger platforms like OpenAI and Google integrated similar automation features directly into their own tools.

This closure adds to a growing number of AI projects and startups that have either shut down, pivoted, or significantly underperformed. According to S&P Global Market Intelligence, around 42% of corporate AI initiatives are eventually abandoned.

Even major players have faced setbacks. OpenAI, for example, rolled back a redesign of its ChatGPT app in July 2026 after users found the new interface confusing. The company also discontinued its standalone AI-powered web browser, ChatGPT Atlas, on August 9, 2026, integrating its features into ChatGPT.

Apple's improved Siri AI, part of Apple Intelligence unveiled in 2024, experienced repeated delays due to engineering issues and bugs. The new AI-powered Siri finally appeared in the iOS 27 beta in July 2026, with a rollout to English-language users this month.

In hardware, the Humane AI Pin, a wearable AI device, shut down its business in February 2025 following performance issues and a battery fire risk warning. Notion Mail, an AI-focused email product launched in April 2025, is scheduled to shut down on September 22, 2026, as users opted for separate AI agents for email management.

Why this matters: The high rate of abandoned AI initiatives and product failures highlights the challenges within the rapidly evolving artificial intelligence sector, affecting both startups and established technology companies.

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