Humane, the once-promising startup behind the AI Pin, is being acquired by HP Inc. for $116 million, the company announced on Wednesday. As part of the deal, HP will take over Humane’s AI assets, including its software platform, intellectual property, patents, and team.
Originally priced at $699, the AI Pin was promoted as a potential smartphone alternative, generating significant buzz through high-profile marketing campaigns, including appearances at events like Paris Fashion Week. Time magazine even recognized it as one of the best inventions of 2023. However, the device faced widespread criticism upon release, with negative reviews highlighting its flaws, ultimately leading to its downfall.
Established in 2019 by husband-and-wife duo Imran Chaudhri and Bethany Bongiorno, Humane started to revolutionize AI with its screenless, conversational AI Pin. Both co-founders had previously worked at Apple, with Chaudhri playing a key role in shaping the iPhone’s interface.
Humane initially positioned the AI Pin as a groundbreaking wearable, but customers encountered challenges once they started using it. Users reported overheating issues, while the AI software frequently delivered inaccurate responses. Despite ambitious plans to sell 100,000 units in its first year, Humane secured only about 10,000 orders.
Roughly a week after the AI Pin reviews came out, HP, a leading computer manufacturer, began talks with Humane about a potential acquisition valued at over $1 billion. Other bidders also showed interest, though discussions remained informal.
Last year, Humane brought in an investment bank to explore a possible sale while seeking fresh funding. The San Francisco-based startup had secured $240 million from prominent Silicon Valley investors, including OpenAI CEO Sam Altman and Salesforce CEO Marc Benioff, who valued the company at $1 billion based on its vision and potential. According to its founders, Humane spent five years developing the AI Pin.
In its announcement, HP stated that it would leverage Humane’s technology to become a more “experience-led company.” With the acquisition, HP will establish an innovation lab called HP IQ, which will focus on “building an intelligent ecosystem across HP’s products and services.” Chaudhri and Bongiorno will join HP as part of the deal.
HP, a leading PC and printer manufacturer, has steadily incorporated AI features into its laptops and other products. However, like many competitors, the company largely relies on Microsoft to implement AI capabilities within Windows-based computers.
