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Inside the Humane acquisition: HP offers big raises to some, others immediately laid off | TechCrunch

Feb 20, 2025 - techcrunch.com
Humane, a former AI hardware startup, has been partially acquired by HP for $116 million, significantly less than the $240 million it raised in venture capital. The acquisition led to a chaotic day for Humane's 200 employees, with some receiving job offers from HP with substantial pay increases, while others, particularly those involved with the AI Pin devices, were laid off. HP's interest lies in Humane's AI-focused software engineers, as it plans to integrate artificial intelligence into its products through a new unit, HP IQ, which will also house Humane's cofounders and its AI operating system, CosmOS.

Humane had been struggling, with its AI Pin receiving negative reviews, facing safety issues, and experiencing high return rates. The company reduced the AI Pin's price from $699 to $499 and advised customers to recycle the devices post-acquisition, as they would soon become non-functional. Despite these challenges, some view Humane as a moderate success for a startup, having sold thousands of devices and gained national attention. The AI Pin's failure coincides with the rise of other AI wearables, such as Meta's Ray Ban smart glasses and Rabbit's R1, suggesting that while Humane's product was ahead of its time, the market for AI wearables is still evolving.

Key takeaways:

  • Humane, an AI hardware startup, was partially acquired by HP for $116 million, significantly less than the $240 million it raised in venture capital.
  • Following the acquisition, some Humane employees received job offers from HP with significant pay increases, while others, particularly those involved with AI Pin devices, were laid off.
  • Humane's AI Pin faced negative reviews, safety issues, and declining sales, leading to a price drop and eventual discontinuation.
  • Despite its challenges, Humane's acquisition by HP and the continuation of some projects at HP IQ are seen by some as a moderate success for the startup.
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