Humane, the Bay Area startup known for its ambitious AI Pin, has announced its acquisition by tech giant HP for $116 million. The deal marks a dramatic turn of events for Humane, which had high hopes for its AI Pin—a device touted as a smartphone replacement—when it launched in April 2024. However, the product failed to meet expectations, leading to a series of challenges for the company.
The Rise and Fall of the AI Pin
The AI Pin, initially hailed as a groundbreaking innovation, quickly faced criticism from early reviewers and customers. Reports from The Verge highlighted a troubling trend last summer when returns began outpacing sales. In an attempt to revive interest, Humane slashed the price of the AI Pin by $200 in October. Despite these efforts, the company encountered further setbacks, including issuing a warning against using the device’s charging case due to battery fire concerns.
Founded by former Apple employees Bethany Bongiorno and Imran Chaudhri, Humane raised over $230 million to bring the AI Pin to market. The startup’s vision extended beyond wearable technology, as evidenced by a recent advertisement showcasing the AI operating system’s potential integration into cars, smart speakers, TVs, and Android devices. However, this vision failed to translate into commercial success.
Humane’s Acquisition by HP
In May 2024, Humane attempted to secure a more lucrative acquisition deal, seeking valuations between $750 million and $1 billion, according to Bloomberg. Despite these aspirations, the company ultimately settled for HP’s $116 million offer. The acquisition includes Humane’s engineers and product managers, as confirmed in a blog post by HP.
Effective immediately, Humane will discontinue sales of its $499 AI Pins. The company also announced that, post-acquisition, the AI Pins will no longer connect to their servers. Customer support for the device is set to dissolve on February 28. Customers who purchased the AI Pin within the last 90 days are eligible for a refund; however, those with older purchases are not.
Author’s Opinion
While Humane’s ambition with the AI Pin was commendable, the reality of delivering a successful product in the competitive tech market proved too difficult. Despite considerable investment and a promising concept, the product’s inability to meet market expectations reflects the harsh reality of technology innovation. The acquisition by HP, although far below Humane’s original valuation, offers a valuable opportunity for both companies. However, it remains to be seen how HP integrates Humane’s technology and talent into its broader portfolio.
Featured image credit: Trusted Reviews
Follow us for more breaking news on DMR