In 2023, Humane created a Star Trek-inspired AI pin device designed to replace smartphones through voice-assistant interactions, but the product failed to gain traction due to performance issues and a high price point. Technology giant HP has now stepped in to acquire Humane’s AI assets and intellectual property, marking the end of the startup’s hardware ambitions.
The acquisition details: HP is investing $116 million to acquire Humane’s AI capabilities, staff, and over 300 patents and patent applications.
- The deal includes the creation of a new AI innovation lab called HP IQ, which will be staffed by former Humane employees
- Humane’s AI pin business will be discontinued as part of the acquisition
- HP will gain ownership of CosmOS, Humane’s operating system designed for AI agent integration
Technology transfer and future applications: HP plans to leverage Humane’s technology to enhance its existing product ecosystem with AI capabilities.
- The company aims to develop new devices that can process AI requests both locally and in the cloud
- HP intends to integrate the AI platform across its product line, including AI PCs, smart printers, and connected conference rooms
- Humane’s co-founders, Bethany Bongiorno and Imran Chaudhri, will join HP as part of the acquisition
Product challenges and market response: The Humane AI Pin faced significant obstacles that ultimately led to its discontinuation.
- Reviews criticized the device for slow processing speeds and poor implementation
- The $699 price tag proved to be a significant barrier to adoption
- Safety concerns emerged when the device was identified as a potential fire hazard
- By May 2024, Humane was seeking a buyer, initially hoping for a $1 billion valuation
- The company halted sales of the smart pin on its website
Market implications and future outlook: The acquisition of Humane’s technology by HP signals a shift from standalone AI wearables to integrated AI solutions within established product ecosystems.
- The failure of the Humane AI Pin demonstrates the challenges of introducing revolutionary new form factors in the mature smartphone market
- HP’s strategic investment suggests a focus on practical AI applications within existing device categories rather than creating entirely new product categories
- The integration of Humane’s technology into HP’s broad product line could potentially reach a wider audience than the original AI Pin
Lessons learned: The Humane story serves as a reminder that innovative technology alone doesn’t guarantee market success, particularly when products face practical limitations, high costs, and safety concerns.
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