Their statement in this article has a half dozen different reasons for dropping the project. A suspicious number of reasons, and all of them sound more like excuses. You're definitely right about the Ministry of Truth though, because this embarrassment has been in development since 2024.

It's cost cutting. They're burning cash faster than they can raise it.

One product

Yeah, very likely. I suppose the product focus will be government/military. They will get the AI find people to disappear or pick bombing targets. That’s apparently a profitable endeavor.