Original research · Updated June 28, 2026

The State of AI Tool Mortality

We have catalogued 2,461 AI tools. 189 of them have since shut down or been acquired — a 7.7% mortality rate. This is a live, hand-reviewed measure of how fast the AI tool landscape turns over, drawn from our editorial Graveyard.

Key findings

Cite these
  • Of the 2,461 AI tools ToolDirectory.AI has tracked, 189 (7.7%) have shut down or been acquired.
  • 89 tools shut down outright; 100 were acquired.
  • 2025 was the deadliest year on record, with 83 retirements.
  • 46% of acquired AI tools kept shipping under their own brand; the rest were folded in and sunset.
  • 74 distinct companies have acquired at least one tracked AI tool.
  • The category with the most retirements is Developer Tools (29 dead tools).

By the numbers

As of June 28, 2026
2,461Tools trackedActive catalog + Graveyard
189RetiredShut down or acquired
7.7%Mortality rateShare of all tracked tools
89Hard shutdownsProduct offline, team gone
100Acquired46% kept shipping
2,272Still activeLive in the catalog today

Retirements by year

deceasedAt
1'18
1'19
3'20
3'21
4'22
20'23
45'24
83'25
25'26

Counts reflect the year each tool actually wound down (deceasedAt), which is often earlier than when we catalogued it. Recent years lag — failures surface months after the fact.

How they died

By cause
Acquired and sunset · 51.4%
92
Domain lapsed · 25.7%
46
Shut down · 22.3%
40
Abandoned · 0.6%
1

Who is buying

Consolidation
01NVIDIA7 tools
02OpenAI7 tools
03Cursor (Anysphere)3 tools
04Google3 tools
05Meta3 tools
06Amazon2 tools
07Calabrio2 tools
08Databricks2 tools
09SmythOS2 tools
10Snowflake2 tools

Where tools die

Retirements by category
Developer Tools
29
AI Infrastructure
22
AI Art & Image Creation
15
AI Content Writing
12
AI/ML Models
12
Customer Support
12
Marketing & SEO
12
Productivity
12

Absolute counts of retired tools per category. Larger categories naturally show more deaths.

Cite this report

Open data

This report and its underlying dataset are free to cite and reuse under CC BY 4.0 with attribution to ToolDirectory.AI.

ToolDirectory.AI, "The State of AI Tool Mortality," June 28, 2026. https://tooldirectory.ai/research/ai-tool-mortality

Methodology

How we count

Every entry in the Graveyard is read, sourced, and dated by an editor before it lands — we do not auto-scrape, and we do not mark a tool dead just because its domain stops resolving. “Retired” means a hard shutdown or an acquisition; acquired tools that kept shipping under their own brand are tracked separately and are not counted as deaths in the cause and category breakdowns where noted.

The mortality rate is the Graveyard count divided by every tool we have ever tracked (active catalog plus Graveyard). It is a floor, not a ceiling: tools we never catalogued and tools that have died but we have not yet confirmed are not included. Numbers regenerate automatically as the registry grows.

Questions

FAQ
How many AI tools have shut down?

ToolDirectory.AI has tracked 2,461 AI tools; 189 (7.7%) have since shut down or been acquired. Of those, 89 were hard shutdowns and 100 were acquisitions.

What is the AI tool failure rate?

Across every tool we have catalogued, the mortality rate is 7.7% as of June 28, 2026. This counts both outright shutdowns and acquisitions where the original brand was retired.

What kills most AI tools — shutdown or acquisition?

The most common recorded cause is "Acquired and sunset" at 51.4% of retirements with a known cause.

Do acquired AI tools survive?

46% of acquired AI tools kept shipping under their own brand after the deal; the rest were folded into the acquirer and sunset.

How is this data collected?

Every Graveyard entry is hand-reviewed, sourced, and dated by an editor — never auto-scraped. The full dataset is available as JSON at /feed/graveyard.json under CC BY 4.0.

Newsletter

Get the weekly roundup.

One email each Friday. The week's additions, the week's deaths, and one thing we changed our mind about. No drip sequences, no AI-generated filler.

Subscribe to the newsletter →

Sign up for our newsletter

Receive weekly updates so you can stay up-to-date with the world of AI