Humane,the AI hardware startup founded by former Apple designers, is reportedly seeking a buyout valued at over $1 billion despite poor reception and low sales of its AI Pin device. According to New York Times report, Humane’s AI Pin, a wearable AI assistant, has only garnered about 10,000 orders, falling drastically short of the 100,000 units the company aimed to distribute this year.
The AI Pin, priced at $700, also requires a mandatory $24 monthly fee to T-Mobile. Despite the steep pricing, the device has not resonated well with consumers or critics. It was launched with the expectation of revolutionizing how individuals interact with AI technology on the go, but it has instead been met with criticism for its high cost and limited utility. Reviewers have harshly criticized the device, with many noting that it did not live up to its promises, leading to devastating reviews around the time these figures were disclosed.
The revenue from these sales, not accounting for any cancellations that may have occurred in light of the reviews, would amount to a maximum of approximately $7.24 million. This stark discrepancy between expectations and reality has led Humane to seek a substantial buyout, despite the product’s poor performance.
According to a source familiar with the matter, Humane is currently engaged in discussions with several potential buyers, including HP and more than one telecom company. These talks come after the AI Pin’s disappointing performance in the market. The source also informed CNBC that Humane has enlisted Tidal Partners, an investment bank, to advise on the possible sale, aiming for a valuation exceeding $1 billion.
Additionally, this week, Humane issued a safety warning to its customers, urging them to stop using the AI Pin’s charging case due to potential fire safety risks, adding another layer of complication to the company’s already precarious situation.
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