Failed 2025

    Rain AI

    Custom AI neuromorphic chips require billions to fabricate. $60M isn't enough to compete with NVIDIA.

    Founded → Closed

    2017 → 2025

    Funding Raised

    $60M

    Industry

    AI/Semiconductors

    Country

    USA

    IdeaProof AI Failure Score

    58/100
    Market Fit RiskBurn Rate RiskFounder Risk
    Market Fit Risk
    45
    Burn Rate Risk
    70
    Founder Risk
    25

    Full Analysis

    Rain AI aimed to build brain-inspired neuromorphic processors for AI workloads, promising massive efficiency gains over traditional GPUs. Sam Altman personally invested. But semiconductor development requires billions in capital — $60M wasn't close to enough for tape-outs and fabrication. The company ran into national security scrutiny (Saudi investment concerns) and shut down in 2025 without producing commercial chips.

    Could This Failure Have Been Prevented?

    IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank Rain AI.