AI: Series of Setbacks, from Delayed Siri to Contested Recall

Closures and setbacks are affecting both giants and startups. Between a $250 million settlement at Apple, the shutdown of Sora, and marked-down acquisitions, the sector is experiencing corrections. According to S&P Global Market Intelligence, about 42% of AI initiatives end up abandoned.

Quantified Consequences: $250M Settlement, Sora Shutdown, Humane Assets Acquired

Apple has repeatedly delayed the release of the new Siri, which contributed to a $250 million settlement related to allegations about how the iPhone 16 was marketed in terms of AI. At OpenAI, Sora, a video-sharing platform that faced high operating costs and difficulties in retaining users, shut down in March 2026. In the audio sector, Huxe, an app created by former Google developers, also closed in May 2026, as major platforms expanded their AI audio offerings. On the hardware side, most of Humane's assets were acquired by HP for $116 million after the cessation of the AI Pin business.

Microsoft Recall Delayed After Privacy Outcry

At Build 2024, Microsoft unveiled Recall, described as a "photographic memory" for Windows PCs that regularly takes screenshots to facilitate searching through digital history. This presentation immediately sparked reactions regarding privacy and security, with some critics arguing that the tool could create an accessible archive of particularly sensitive information. Microsoft postponed Recall for nearly a year to revise its protective measures, but the controversy did not cease after the redesign. A cybersecurity researcher later developed a tool capable of extracting and displaying data captured by Recall, reviving concerns about Microsoft's ability to address the underlying issue.

Integrate to Survive: The Logic of Platforms and Its Failures

In the face of automation integration by OpenAI, Google, and others, Relay, a five-year-old email and task automation AI tool, shut down after struggling to justify itself as a standalone product. OpenAI, for its part, attempted to turn ChatGPT into a "super app" by combining several modes on July 9, only to reverse course after user criticism regarding the new interface. The company also closed several standalone applications and integrated their capabilities into ChatGPT: the AI browser ChatGPT Atlas, discontinued on August 9 after less than a year, had its functions absorbed, as did those of Operator, an agent capable of navigating and executing tasks. OpenAI also enhanced image generation in ChatGPT, reducing the distinct role of DALL-E.

AI Hardware: AI Pin Shut Down, Rabbit R1 Criticized Then Repositioned

The Humane AI Pin, envisioned as a wearable device providing AI functions, faced significant performance challenges. After a warning to stop using the charging case due to potential battery fire risks, the AI Pin business closed in February 2025. Humane had raised $230 million, and most of its assets were sold to HP for $116 million. The Rabbit R1, unveiled at CES in January 2024 to perform tasks on behalf of its owner, claimed 100,000 units shortly after launch, but early reviews deemed it unfinished, unreliable, and lacking in integrations. Rabbit continued updates and repositioned the R1 as a computer controller capable of agentic tasks, while recently announcing the hardware project "Project Cyberdeck" for a portable device dedicated to vibe-coding.

Siri AI: Ambitious Promise, Repeated Delays, Then Limited Deployment

With Apple Intelligence unveiled in 2024, Apple showcased a Siri capable of understanding context, tracking applications, and executing tasks efficiently. However, the release was delayed multiple times due to engineering issues and bugs. Siri AI appeared in beta in iOS 27 last July, and the AI-powered version is being rolled out first for English speakers this month, with support for other languages planned for later.

When the Product Doesn't Take Off: Notion Mail, Yupp, and Figgs AI

Notion Mail, launched in April 2025 to organize and automate messaging via AI, is set to close on September 22, as Notion found that its users preferred separate AI agents. Yupp offered side-by-side comparisons of responses from hundreds of models, with votes and cryptocurrency rewards; at its peak, over 800 models were testable, including those from OpenAI, Google, and Anthropic. According to its founders, the product-market fit was never sufficient, and the platform shut down in March 2026. Figgs AI, active from 2023 to 2024 for creating AI characters for role-playing and storytelling, reportedly surpassed one million users; its developers explained that maintaining free access was too costly and closed the service. More broadly, S&P Global Market Intelligence estimates that about 42% of AI initiatives are abandoned for various reasons. In the audio sector, major players have expanded similar offerings, such as Spotify with its AI tools.