Closure, newest first.
Closure stories — newest first.

OpenAI shuts down Sora due to costs
High operational costs and infrastructure miscalculations introduce significant financial risks for companies prioritising frontier model development. This shifts competitive advantage towards ecosystem integration and cost efficiency, requiring platform engineers to evaluate long-term financial viability of AI providers.

OpenAI shuts down Sora tool
OpenAI is shutting down its Sora text-to-video tool, three months after Disney pledged a $1 billion investment. This introduces significant uncertainty for investors and content creators, highlighting volatile product development cycles in frontier AI.

Hachette Pulls AI-Suspect Novel
Hachette Book Group cancelled the US publication of 'Shy Girl' and discontinued its UK availability, citing concerns over AI-generated text. This action creates new risks for content procurement teams and authors, increasing scrutiny and potential litigation over content provenance.

Kapwing Shuts Down AI Art Marketplace
Kapwing's Tess.Design, an AI image marketplace paying artists 50% royalties, launched in May 2024 and shut down in January 2026. It generated $12,172.33 revenue but lost $7,000 directly. Artist recruitment was low, with only 6.5% joining.

OpenAI Cancels Texas Data Centre Expansion
The cancellation of a major AI data centre expansion in Texas due to financing and demand shifts highlights the volatility of large-scale AI infrastructure. This forces procurement teams to account for dynamic capacity needs and potential vendor disputes.

OpenAI Drops Texas Data Center Expansion
Oracle and OpenAI cancelled plans to expand their Texas AI data centre by 0.8 GW due to stalled financing and shifting demand forecasts. This highlights the fluidity of large-scale AI infrastructure commitments, requiring procurement teams and investors to re-evaluate project stability.

Halts China H20 Production
Nvidia has stopped producing H20 AI chips for China. This reduces predictable access to advanced AI accelerators for Chinese firms, pushing them towards domestic alternatives amid regulatory uncertainty and reduced demand.

Myrient Archive Shuts Down Due to Costs
Myrient, a 390TB online video game archive, will shut down by March 31, 2026. Escalating hardware costs, driven by an AI-driven supply squeeze, combined with insufficient funding and commercial misuse, made the service unsustainable for its creator.

Amazon terminates Blue Jay robotics project
Amazon terminated its Blue Jay robotics project to consolidate resources into core automation programmes. This shift follows a broader restructure under Rohit DeSantis, prioritising scalable infrastructure over experimental hardware to support a $200B AI investment strategy.

Adobe discontinues Animate software
Adobe will discontinue its Animate software on March 1, 2026, shifting focus to AI. This mandates a forced migration for users, impacting content creation workflows and increasing the burden on IT procurement to secure alternative solutions.

Burry Closes Scion Capital Fund
Michael Burry has closed Scion Asset Management, citing concerns over inflated tech and AI valuations and aggressive accounting practices that could understate depreciation by $176 billion, leading to fund liquidation.

Builder.ai Enters Insolvency Proceedings
Microsoft-backed AI startup Builder.ai enters insolvency after financial difficulties and overstated sales.

Tesla discontinues Dojo supercomputer project
Tesla discontinues Dojo supercomputer development, shifting to external AI chip partnerships.

Verily Discontinues Medical Device Program
Verily ends device program, pivots to AI.

Builder.ai files for bankruptcy
AI app builder collapses amid financial mismanagement allegations.

Amazon Closes Shanghai AI Lab
Amazon shuts down its Shanghai-based AI research lab.

Builder.ai faces legal, financial scrutiny
US prosecutors sought Builder.ai data before its collapse amid overstated sales.

Builder AI Closes Amid AI-washing
Builder AI's collapse highlights the risks of 'AI-washing' and investor demand for genuine innovation.