🤖 AI · updated 2026-10-08

US AI Companies in Financial Distress (October 2026)

As of 08 October 2026, 74 of 318 US AI companies analysed (23%) show financial-distress indicators: 15 very weak, 27 weak and 32 on watch. The most common red flags in this sector are losses in each of the last 3 years, operations consume cash, cash runway under 12 months and liabilities exceed assets (negative equity).

318

Analysed

Distress signals

Very weak

23%

Flag rate

What drives financial distress in AI

Companies tagged AI across all sectors — high-growth names where cash burn, dilution and valuation-driven price collapses are the key distress channels.

Most common red flags today: Losses in each of the last 3 years · Operations consume cash · Cash runway under 12 months · Liabilities exceed assets (negative equity)

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AI companies with distress signals

#	Ticker	Company / industry	Distress score	Band	Ohlson PD	Merton PD	From 52w high	Key indicators
1	EXYN	Exyn Technologies, Inc. Software - Infrastructure	100	Very weak	100%	50.9%	-63%	Liabilities exceed assets (negative equity)Operating profit does not cover interestCash runway under 12 months	Details →
2	PSNY	Polestar Automotive Holding UK PLC Auto Manufacturers	100	Very weak	100%	97.0%	-82%	Liabilities exceed assets (negative equity)Operating profit does not cover interestCash runway under 12 months	Details →
3	RDZN	Roadzen, Inc. Software - Application	100	Very weak	100%	2.8%	-54%	Liabilities exceed assets (negative equity)Operating profit does not cover interestCash runway under 12 months	Details →
4	REKR	Rekor Systems, Inc. Software - Infrastructure	100	Very weak	95%	52.6%	-90%	Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20%	Details →
5	VERI	Veritone, Inc. Software - Infrastructure	100	Very weak	99%	53.1%	-93%	Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20%	Details →
6	QMLS	QumulusAI, Inc. Software - Infrastructure	93	Very weak	94%	60.9%	-74%	Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20%	Details →
7	ILLR	Triller Group Inc. Software - Application	86	Very weak	—	—	-100%	Liabilities exceed assets (negative equity)Cash runway under 12 monthsLosses in each of the last 3 years	Details →
8	QXL	Quantum X Labs Inc. Information Technology Services	81	Very weak	92%	0.1%	-39%	Cash runway under 12 monthsSevere working-capital shortfallLosses in each of the last 3 years	Details →
9	CXAI	CXApp Inc. Software - Application	77	Very weak	96%	77.5%	-96%	Market-implied default probability >20%Losses in each of the last 3 yearsRevenue collapse	Details →
10	BRUN	Boost Run, Inc. Software - Infrastructure	75	Very weak	99%	8.6%	-69%	Operating profit does not cover interestSevere working-capital shortfallMaterial debt with no EBITDA	Details →
11	DVLT	Datavault AI Inc. Software - Infrastructure	72	Very weak	50%	29.8%	-96%	Cash runway under 12 monthsMarket-implied default probability >20%Losses in each of the last 3 years	Details →
12	GCTS	GCT Semiconductor Holding, Inc. Semiconductors	72	Very weak	—	—	-44%	Liabilities exceed assets (negative equity)Cash runway under 12 monthsLosses in each of the last 3 years	Details →
13	RKTO	Rocket One Inc. Software - Infrastructure	71	Very weak	100%	—	-71%	Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash	Details →
14	KSCP	Knightscope, Inc. Building Products & Equipment	70	Very weak	—	—	-91%	Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash	Details →
15	WOLF	Wolfspeed, Inc. Semiconductors	70	Very weak	86%	11.9%	-58%	Cash runway under 12 monthsLosses in each of the last 3 yearsMaterial debt with no EBITDA	Details →
16	FUSE	Fusemachines Inc. Software - Application	69	Weak	—	—	-98%	Liabilities exceed assets (negative equity)Cash runway under 12 monthsOperations consume cash	Details →
17	OBAI	Our Bond, Inc. Software - Infrastructure	69	Weak	—	—	-99%	Liabilities exceed assets (negative equity)Cash runway under 12 monthsOperations consume cash	Details →
18	WULF	TeraWulf Inc. Capital Markets	68	Weak	—	—	-53%	Critically thin capitalConsecutive annual lossesEquity eroded by >20% in a year	Details →
19	AZIO	Azio AI Holdings, Inc. Software - Infrastructure	66	Weak	—	—	-71%	Liabilities exceed assets (negative equity)Cash runway under 12 monthsLosses in each of the last 3 years	Details →
20	CYN	Cyngn Inc. Software - Application	65	Weak	—	—	-91%	Losses in each of the last 3 yearsRevenue collapseOperations consume cash	Details →
21	FABC	Fabric.AI, Inc. Semiconductors	65	Weak	100%	0.1%	-64%	Losses in each of the last 3 yearsRevenue collapseOperations consume cash	Details →
22	INVZ	Innoviz Technologies Ltd. Auto Parts	65	Weak	95%	17.3%	-87%	Losses in each of the last 3 yearsOperations consume cashShare price down >80% from 52-week high	Details →
23	LPSN	LivePerson, Inc. Software - Application	65	Weak	—	—	-82%	Liabilities exceed assets (negative equity)Losses in each of the last 3 yearsOperations consume cash	Details →
24	ODYS	Odysight.ai Inc. Scientific & Technical Instruments	65	Weak	100%	0.0%	-65%	Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure	Details →
25	SMTK	SmartKem, Inc. Semiconductor Equipment & Materials	65	Weak	100%	71.6%	-99%	Market-implied default probability >20%Losses in each of the last 3 yearsOperations consume cash	Details →
26	MVIS	MicroVision, Inc. Scientific & Technical Instruments	64	Weak	—	—	-94%	Cash runway under 12 monthsLosses in each of the last 3 yearsRevenue collapse	Details →
27	NUAI	New Era Energy & Digital, Inc. Software - Infrastructure	63	Weak	100%	5.7%	-40%	Severe working-capital shortfallOperations consume cashOhlson O-score signals likely failure	Details →
28	PRSO	Peraso Inc. Semiconductors	63	Weak	—	—	-82%	Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash	Details →
29	DAIC	CID HoldCo, Inc. Information Technology Services	61	Weak	—	—	-97%	Liabilities exceed assets (negative equity)Cash runway under 12 monthsOperations consume cash	Details →
30	BLIN	Bridgeline Digital, Inc. Software - Infrastructure	60	Weak	89%	0.0%	-52%	Severe working-capital shortfallLosses in each of the last 3 yearsOperations consume cash	Details →
31	AMCI	AMC Robotics Corporation Computer Hardware	59	Weak	100%	1.7%	-81%	Losses in each of the last 3 yearsRevenue collapseOperations consume cash	Details →
32	ARQQ	ARQQ Software - Infrastructure	59	Weak	100%	0.0%	-68%	Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash	Details →
33	PLTS	Platinum Analytics Cayman Limited Software - Application	59	Weak	100%	—	+0%	Cash runway under 12 monthsOperations consume cashOhlson O-score signals likely failure	Details →
34	GFAI	GFAI	57	Weak	42%	32.7%	-79%	Market-implied default probability >20%Losses in each of the last 3 yearsOperations consume cash	Details →
35	XNDU	Xanadu Quantum Technologies Limited Software - Infrastructure	57	Weak	51%	50.2%	-89%	Market-implied default probability >20%Losses in each of the last 3 yearsOperations consume cash	Details →
36	BZAI	Blaize Holdings, Inc. Software - Application	55	Weak	—	—	-95%	Cash runway under 12 monthsOperations consume cashShare price down >80% from 52-week high	Details →
37	VUZI	Vuzix Corporation Consumer Electronics	52	Weak	100%	0.0%	-51%	Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash	Details →
38	BBAI	BigBear.ai Holdings, Inc. Information Technology Services	51	Weak	41%	0.0%	-73%	Losses in each of the last 3 yearsOperations consume cashMassive shareholder dilution	Details →
39	DAVA	Endava plc Software - Infrastructure	51	Weak	57%	85.0%	-80%	Operating profit does not cover interestMarket-implied default probability >20%Very high leverage	Details →
40	CHRN	ChronoScale Holdings Corporation Information Technology Services	50	Weak	—	—	-36%	Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash	Details →
41	POET	POET Technologies Inc. Semiconductors	50	Weak	68%	0.0%	-66%	Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure	Details →
42	RGTI	Rigetti Computing, Inc. Computer Hardware	50	Weak	—	—	-75%	Losses in each of the last 3 yearsRevenue collapseOperations consume cash	Details →
43	PONY	Pony AI Inc. Information Technology Services	49	Watch	50%	0.0%	-76%	Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure	Details →
44	PXLW	Pixelworks, Inc. Semiconductors	49	Watch	100%	0.0%	-60%	Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure	Details →
45	AIMD	Ainos, Inc. Scientific & Technical Instruments	48	Watch	—	—	-72%	Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash	Details →
46	BNAI	Brand Engagement Network, Inc. Software - Infrastructure	47	Watch	—	—	-92%	Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash	Details →
47	CSAI	Cloudastructure Inc. Software - Infrastructure	47	Watch	—	—	-96%	Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash	Details →
48	MOBX	Mobix Labs, Inc. Semiconductors	47	Watch	—	—	-90%	Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash	Details →
49	NVTS	Navitas Semiconductor Corporation Semiconductors	47	Watch	24%	0.0%	-66%	Revenue collapseOperations consume cashLosses in 2 of the last 3 years	Details →
50	ATOM	Atomera Incorporated Semiconductor Equipment & Materials	45	Watch	—	—	-66%	Losses in each of the last 3 yearsRevenue collapseOperations consume cash	Details →
51	SMR	NuScale Power Corporation Specialty Industrial Machinery	45	Watch	—	—	-86%	Losses in each of the last 3 yearsOperations consume cashShare price down >80% from 52-week high	Details →
52	BTBT	Bit Digital, Inc. Capital Markets	44	Watch	—	—	-68%	Latest year loss-makingDeep share-price drawdownMassive shareholder dilution	Details →
53	HIVE	HIVE Digital Technologies Ltd. Capital Markets	44	Watch	—	—	-63%	Consecutive annual lossesDeep share-price drawdownMassive shareholder dilution	Details →
54	IPWR	Ideal Power Inc. Semiconductors	44	Watch	—	—	-59%	Losses in each of the last 3 yearsRevenue collapseOperations consume cash	Details →
55	AISP	Airship AI Holdings, Inc. Software - Infrastructure	43	Watch	—	—	-67%	Liabilities exceed assets (negative equity)Revenue collapseDeep share-price drawdown	Details →
56	LAES	LAES	43	Watch	10%	0.0%	-71%	Losses in each of the last 3 yearsOperations consume cashMassive shareholder dilution	Details →
57	IDAI	T Stamp Inc. Software - Application	42	Watch	—	—	-27%	Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash	Details →
58	MOVE	Corvex, Inc. Software - Infrastructure	42	Watch	—	—	-60%	Losses in each of the last 3 yearsRevenue collapseOperations consume cash	Details →
59	AIFF	Firefly Neuroscience, Inc. Software - Application	41	Watch	—	—	-60%	Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months	Details →
60	CORZ	Core Scientific, Inc. Software - Infrastructure	41	Watch	—	—	-47%	Liabilities exceed assets (negative equity)Revenue collapseLosses in each of the last 3 years	Details →
61	MX	Magnachip Semiconductor Corporation Semiconductors	41	Watch	—	—	-65%	Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months	Details →
62	WYFI	WhiteFiber, Inc. Information Technology Services	41	Watch	56%	22.5%	-65%	Market-implied default probability >20%Material debt with no EBITDAOhlson O-score signals likely failure	Details →
63	AAOI	Applied Optoelectronics, Inc. Communication Equipment	40	Watch	—	—	-53%	Losses in each of the last 3 yearsOperations consume cashMassive shareholder dilution	Details →
64	SWMR	Swarmer, Inc Software - Infrastructure	40	Watch	99%	0.1%	-83%	Operations consume cashShare price down >80% from 52-week highOhlson O-score signals likely failure	Details →
65	CBRS	Cerebras Systems Inc. Semiconductors	39	Watch	33%	5.4%	-46%	Liabilities exceed assets (negative equity)Losses in 2 of the last 3 yearsElevated market-implied default probability	Details →
66	PAAI	Paradium.AI, Inc. Internet Content & Information	37	Watch	—	—	-82%	Liabilities exceed assets (negative equity)Share price down >80% from 52-week highOperations consume cash	Details →
67	RXRX	Recursion Pharmaceuticals, Inc. Biotechnology	37	Watch	—	—	-42%	Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months	Details →
68	AIXC	AIxCrypto Holdings, Inc. Software - Infrastructure	36	Watch	—	—	-71%	Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months	Details →
69	ASTS	AST SpaceMobile, Inc. Communication Equipment	36	Watch	—	—	-57%	Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months	Details →
70	GXAI	Gaxos.ai Inc. Electronic Gaming & Multimedia	36	Watch	—	—	-79%	Losses in each of the last 3 yearsOperations consume cashTrading below $1	Details →
71	NRDY	Nerdy Inc. Software - Application	36	Watch	—	—	-68%	Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months	Details →
72	CIFR	Cipher Digital Inc. Information Technology Services	35	Watch	—	—	-54%	Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months	Details →
73	INDI	indie Semiconductor, Inc. Semiconductors	35	Watch	—	—	-57%	Losses in each of the last 3 yearsOperations consume cashCash runway under 24 months	Details →
74	QUIK	QuickLogic Corporation Semiconductors	35	Watch	75%	0.0%	-55%	Losses in each of the last 3 yearsOhlson O-score signals likely failureSteep revenue decline	Details →

Frequently asked questions

Which AI companies are in financial distress?

As of 2026-10-08, 74 US AI companies show financial-distress indicators (15 very weak, 27 weak and 32 on watch). The table on this page ranks them by score with the indicators behind each one. These are statistical signals, not predictions that any company will file.

How many AI companies are in financial trouble?

74 of 318 analysed (23%); 15 are in the 'Very weak' band.

What are the biggest financial risks for AI companies?

Companies tagged AI across all sectors — high-growth names where cash burn, dilution and valuation-driven price collapses are the key distress channels. Right now the most frequent red flags are losses in each of the last 3 years, operations consume cash, cash runway under 12 months and liabilities exceed assets (negative equity).

What happens to shareholders if a company becomes insolvent?

In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.

Financial distress in other sectors

🏦 Bank & Finance 57 🛡️ Insurance 6 💊 Pharma & Biotech 354 🩺 Healthcare & MedTech 98 💻 IT & Software 113 🔬 Semiconductor 15 🖥️ Hardware & Electronics 40 📡 Telecom & Media 55 🛍️ Consumer Discretionary 91 🛒 Consumer Staples 41 🏭 Industrials & Capital Goods 116 🛢️ Energy, Oil & Gas 31 ⛏️ Metals, Mining & Chemicals 61 ⚡ Utilities & Power 14 🏢 Real Estate Cos & REITs 25 📦 SPACs & Shell Companies 0 ❔ Unclassified 235

Important: A listing means a company’s reported numbers resemble those of firms that later failed — it is not a statement that the company is insolvent, has defaulted or will enter insolvency proceedings. Recalculated every trading day. Not investment or legal advice.