# Character.ai files for bankruptcy; Relay shuts down

Digest AI · Business & Funding · published 2026-10-24T19:00:00Z

Canonical: https://digestai.news/story/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.

The 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.

Other 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.

## Key points

- 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.

## Why it matters

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.

## Sources

1. [The AI graveyard: a running list of projects and startups that didn’t make it](https://techcrunch.com/2026/10/24/the-ai-graveyard-a-running-list-of-projects-and-startups-that-didnt-make-it) (TechCrunch AI, 2026-10-24)

## Cite

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

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