AI: Recall, AI Pin, and Yupp Among Recent Failures

Key Takeaways

1Apple has reached a $250 million settlement related to the iPhone 16's AI, with Siri's delays weighing in the balance

2Microsoft Recall has been delayed after privacy concerns, with controversy persisting despite a redesign

3OpenAI and Notion are shutting down or integrating several AI products, with Relay and Notion Mail disappearing

4Many AI projects like Sora, Huxe, Yupp, and Figgs AI are shutting down due to cost issues or market fit

Why it matters : These failures illustrate the ongoing challenges in the industry to turn AI innovation into viable and safe products, even for the giants.

From software to connected devices, the list of AI projects that have been halted or revamped continues to grow. Between outright closures, integrations into existing suites, and delayed deployments, the reasons are repetitive: costs, security, unfulfilled promises, and hesitant demand. Here’s a numerical overview, from Apple to Rabbit.

Settling Accounts: $250M at Apple, Humane Assets Acquired by HP

Apple has reached a $250 million settlement regarding allegations about the marketing of the AI capabilities of the iPhone 16, with delays in Siri contributing to this outcome. In the hardware sector, Humane had raised $230 million before the majority of its assets were acquired by HP for $116 million. Character.ai filed for bankruptcy five years after its launch. Sora, OpenAI's video-sharing platform, shut down in March 2026. Yupp, which allowed users to compare AI models, also ceased operations in March 2026.

Privacy on Alert: Microsoft’s Recall Doesn’t Extinguish the Fire

Introduced at Build 2024, Microsoft’s Recall feature was supposed to offer "photographic memory" on Windows by periodically recording the screen to allow searching through personal history. The announcement immediately raised privacy concerns: critics pointed out that Recall could create a searchable archive containing passwords, private messages, financial information, and other sensitive data. Microsoft then delayed Recall for nearly a year to review its protections, but the controversy persisted after a redesign. A cybersecurity researcher recently demonstrated that it was possible to extract the captured data, reigniting questions about the resolution of the issue.

When Integration Prevails Over Standalone: OpenAI and Notion Restructure

OpenAI has shut down several standalone applications to integrate their features into ChatGPT, a strategy deemed more effective than attempting to transform ChatGPT into a "super app." On July 9, OpenAI combined the "Chat," "Codex," and "Work" modes and renamed the classic version "ChatGPT Classic," but reversed course after user criticism. ChatGPT Atlas, an AI web browser, was discontinued on August 9 after less than a year, with its main functions merging into ChatGPT, as did those of Operator. The integration of image generation has also diminished the distinct role of DALL-E. Notion launched Notion Mail in April 2025 to organize emails with AI but found that its users preferred separate agents; Notion Mail is set to shut down on September 22. Relay, a workflow automation tool, closed in August after five years, facing competition from similar automation integrations on major platforms and failing to carve out a niche as a standalone product.

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Hardware Put to the Test: AI Pin Fails, R1 Criticized but Persistent

The Humane AI Pin, designed as an alternative to smartphones, encountered significant performance issues, followed by a warning to stop using the charging case due to a battery fire risk. The AI Pin activity was shut down in February 2025. The Rabbit R1, unveiled at CES in January 2024, promised to perform tasks for its owner; Rabbit announced 100,000 sales shortly after launch, but critics deemed the device unfinished, unreliable, and limited in integrations. Rabbit continues to update the R1, now positioned as a computer controller for agentic tasks, and recently announced "Project Cyberdeck," a portable device aimed at vibe-coding.

Product-Market Fit and Costs: Sora, Huxe, Yupp, and Figgs AI Struggle

Sora closed in March 2026 after facing high operating costs and difficulties in retaining users. Huxe, an AI audio application developed by former members of Google NotebookLM, ceased operations in May 2026, partly because major platforms offered similar experiences to a broad audience; Spotify notably expanded its AI audio tools. Yupp allowed users to compare responses from over 800 AI models and vote to earn cryptocurrencies, but its founders believe the platform never found a sufficient product-market fit, leading to its closure in March 2026. Figgs AI, active from 2023 to 2024, offered AI characters for role-playing and storytelling; over a million users were reportedly attracted, but developers found the free service too costly to maintain and shut it down. According to S&P Global Market Intelligence, about 42% of AI initiatives are abandoned, for reasons ranging from insufficient funding to technical challenges, competition, difficulties in scaling, or weak demand.

Roadmap: Siri Arrives in Stages, Other Projects Remain Open

Apple Intelligence, unveiled in 2024, showcased a more contextual version of Siri, capable of understanding what is happening in applications and performing tasks efficiently. After several delays attributed by Apple to engineering issues and bugs, Siri's AI appeared in the beta of iOS 27 in July. The AI-powered version is being rolled out for English-speaking users this month, with other languages planned for later.