Humane, a hardware startup founded by former Apple employees Bethany Bongiorno and Imran Chaudhri, has sold most of its assets to HP for $116 million. This move comes after disappointing sales and reviews of the company’s AI Pin device, which launched in April 2024 as a potential smartphone replacement. Despite raising over $230 million for its development, the AI Pin failed to meet expectations, leading to significant financial challenges for the company.
Priced initially at $499, the AI Pin struggled to capture the market's interest. Early reviewers and customers expressed dissatisfaction, which soon became evident in the company's sales figures. By last summer, returns of the AI Pin began to outpace its sales, compelling Humane to reduce the price by $200 in October in a bid to salvage its investment. Unfortunately, these efforts were insufficient to reverse the downward trend.
Humane had initially sought acquisition offers in May 2024, hoping for a valuation between $750 million and $1 billion. However, the final deal with HP fell short of these expectations. Nonetheless, HP's acquisition includes some of Humane's technology, notably the CosmOS AI operating system. As part of this acquisition, Humane will discontinue sales of its AI Pins immediately.
Current owners of the AI Pin have been notified that their devices will cease to function at 12 PM PST on February 28, 2025. After this date, the AI Pins will no longer connect to Humane's servers, effectively rendering them unusable. This development marks a significant pivot for Humane's ambitions in the consumer electronics space.
The acquisition will see Humane's team integrate into HP as a new division named HP IQ. This group will comprise Humane's engineers and product managers, who are expected to contribute to HP's future technological endeavors. This strategic move reflects HP's interest in bolstering its capabilities with advanced AI technology and skilled personnel.
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