{"version":1,"type":"story","url":"https://digestai.news/story/character-ai-files-for-bankruptcy-relay-shuts-down","json":"https://digestai.news/story/character-ai-files-for-bankruptcy-relay-shuts-down.json","markdown":"https://digestai.news/story/character-ai-files-for-bankruptcy-relay-shuts-down.md","slug":"character-ai-files-for-bankruptcy-relay-shuts-down","headline":"Character.ai files for bankruptcy; Relay shuts down","summary":"TechCrunch AI publishes a running list of AI projects that have failed, pivoted, or been abandoned. Recent additions include Character.ai, which filed for bankruptcy five years after launch, and Relay, a workflow automation tool that shut down in August as larger platforms integrated similar features. The article notes that S&P Global Market Intelligence reports approximately 42% of corporate AI initiatives are ultimately abandoned due to funding, technical, or demand issues.\n\nThe piece also details missteps by major players. OpenAI rolled back a controversial \"super app\" redesign of ChatGPT and discontinued its standalone browser, Atlas, and video platform, Sora. Apple’s delayed Siri AI update led to a $250 million settlement over marketing claims, with the new feature finally rolling out to English users. Microsoft’s Recall feature, an AI-powered memory tool for Windows, faced significant privacy backlash and remains under scrutiny despite security redesigns.\n\nOther notable failures include Humane’s AI Pin, which shut down after a battery fire risk warning and was acquired by HP for $116 million, and Notion Mail, which is scheduled to close in September. The list serves as a record of industry lessons, highlighting how competition from larger platforms and technical challenges often lead to project termination.","keyPoints":["Character.ai filed for bankruptcy five years after launching its chatbot platform.","S&P Global Market Intelligence reports 42% of corporate AI initiatives are abandoned.","Humane shut down its AI Pin business in February 2025; HP acquired assets for $116 million."],"whyItMatters":"This list highlights the high failure rate in AI, showing that even well-funded startups and major tech giants face significant challenges. It underscores the risk of building standalone tools when larger platforms integrate similar features directly.","category":{"slug":"business","name":"Business & Funding","url":"https://digestai.news/category/business"},"entities":{"companies":["Character.ai","Relay","OpenAI","Apple","Microsoft","Notion"],"models":["ChatGPT","Siri","Recall","DALL-E","Sora"],"people":[]},"firstPublishedAt":"2026-10-24T19:00:00Z","updatedAt":"2026-10-24T19:00:00Z","sourceCount":1,"hasPrimarySource":false,"sources":[{"outlet":"TechCrunch AI","title":"The AI graveyard: a running list of projects and startups that didn’t make it","url":"https://techcrunch.com/2026/10/24/the-ai-graveyard-a-running-list-of-projects-and-startups-that-didnt-make-it","publishedAt":"2026-10-24T19:00:00Z","type":"press","primary":false,"lead":true}],"sourceNotes":null,"discussions":[],"thread":null,"cite":{"text":"Digest AI, \"Character.ai files for bankruptcy; Relay shuts down\", 24 October 2026, https://digestai.news/story/character-ai-files-for-bankruptcy-relay-shuts-down","publisher":"Digest AI","title":"Character.ai files for bankruptcy; Relay shuts down","datePublished":"2026-10-24T19:00:00Z","url":"https://digestai.news/story/character-ai-files-for-bankruptcy-relay-shuts-down"},"generatedBy":"Written by Digest AI's editorial model from the linked sources; the sources are the record.","license":"Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse"}