Humane, a hardware startup known for its AI Pin, has been acquired by HP for $116 million. Following the acquisition, Humane is discontinuing sales of its AI Pins and informing customers that their devices will cease functioning by February 28, 2025. The AI Pins, initially launched in April 2024 as a smartphone replacement, faced challenges including poor reviews, high return rates, and safety concerns with its charging case. Despite raising over $230 million, Humane struggled to maintain sales momentum, leading to a significant price drop in October. The acquisition includes Humane’s engineers, product managers, and some of its technology, such as the CosmOS AI operating system, which HP plans to integrate into a new AI innovation lab called HP IQ.
HP aims to leverage Humane’s technology and team to enhance its product and service ecosystem for the future of work. Humane had previously sought a much higher acquisition price, between $750 million and $1 billion, but ultimately settled for the lower amount. The acquisition marks a strategic move for HP to expand its capabilities in AI and intelligent systems, while Humane’s existing customer support for the AI Pin will be dissolved by the end of February 2025.
Key takeaways:
Humane has been acquired by HP for $116 million, leading to the discontinuation of its AI Pins.
AI Pins will stop functioning on February 28, 2025, and Humane advises users to transfer their data immediately.
HP will integrate Humane's team and technology into a new group called HP IQ, focusing on AI innovation.
Humane initially sought a much higher acquisition price in 2024, between $750 million and $1 billion.
