A screen reads “AI” in reference to artificial intelligence as attendees gather during Rivian’s first Autonomy and AI Day in Palo Alto, Calif., on Dec. 11, 2025. Carlos Barria/Reuters
For years, artificial intelligence (AI) startups have been pitched as the vehicles of the next productivity boom.
But as product delivery lagsbehind the hype, some AI companies are slipping into a quieter, more troubling category: startups that are functional but no longer viable.
