In a significant development within the technology sector, Humane Inc., a San Francisco-based startup renowned for its wearable AI device, the Ai Pin, has announced the cessation of its wearable pin business. The company is set to sell its core assets to HP Inc. for $116 million. This strategic move comes in response to the Ai Pin’s underwhelming market performance and critical reception.
Humane Inc.: A Brief Overview
Founded in 2018 by former Apple employees Imran Chaudhri and Bethany Bongiorno, Humane aimed to revolutionize personal technology by creating innovative consumer hardware and software. The company’s flagship product, the Ai Pin, was introduced with the promise of offering a screen-free, AI-driven wearable experience. Despite securing over $230 million in funding from prominent investors—including OpenAI’s Sam Altman and Salesforce’s Marc Benioff—the Ai Pin struggled to meet consumer expectations. Critics highlighted issues such as limited functionality, overheating, and a high price point, leading to more returns than sales within months of its launch.
HP Inc.: Company Profile
HP Inc., headquartered in Palo Alto, California, is a global leader in personal computing, printers, and related services. Established in 2015 following the split of the original Hewlett-Packard Company, HP Inc. has focused on leveraging technological advancements to enhance user experiences across its product lines. The acquisition of Humane’s assets aligns with HP’s strategic initiative to integrate advanced AI capabilities into its existing portfolio, aiming to redefine the future of personal computing and connected devices.
Details of the Acquisition
The $116 million deal encompasses Humane’s software platform, over 300 patents and patent applications, and the majority of its technical staff. Notably, the acquisition excludes the Ai Pin hardware business, which will be discontinued. HP plans to establish a new division, HP IQ, which will focus on embedding artificial intelligence into HP’s range of products and services. This move is expected to accelerate HP’s transformation into a more experience-driven company, utilizing Humane’s AI-powered platform, CosmOS, to develop intelligent ecosystems across HP’s offerings.
Implications for Ai Pin Users
For existing Ai Pin users, the device will remain operational until 3 PM ET on February 28, 2025. Post this deadline, the devices will lose connectivity to Humane’s servers, rendering features such as calling, messaging, AI queries, and cloud access inoperative. Humane advises users to download any stored data before this date to prevent loss. Refunds will be available for customers who purchased the Ai Pin within the 90-day return window from the original shipment date, with requests required by February 27, 2025.
The discontinuation of the Ai Pin and the subsequent acquisition by HP underscore the challenges inherent in launching innovative hardware in a competitive market. While Humane’s vision for a screen-free, AI-driven wearable was ambitious, execution and market reception proved challenging. HP’s acquisition of Humane’s assets signifies a strategic investment in AI technology, aiming to enhance and differentiate its product offerings in the evolving landscape of personal computing.