After just 10,000 orders of its poorly received AI Pin, Humane is looking for a $1 billion takeover. In spite of the poor performance of its AI wearable, the company is reportedly trying to sell itself for a hefty price, according to a recent New York Times article.
By early April, Humane had received around 10,000 orders for the AI Pin, a disappointing figure compared to the 100,000 units it aimed to ship this year. This was around the time when the device was subjected to numerous scathing reviews, which likely hampered any further sales momentum. The AI Pin’s high price—$700 plus a mandatory $24 monthly fee for 4G service—did not help its cause, leading to an estimated initial revenue of $7.24 million, excluding potential canceled orders.
HP is one of the companies reportedly in discussions with Humane regarding a potential acquisition. Talks began shortly after the negative reviews were published. Any potential buyer would be taking on a significant risk, considering the AI Pin’s poor market reception and recent safety concerns. Humane has advised customers to stop using the AI Pin’s charging case due to a possible fire hazard, adding to the company’s woes.
Humane’s audacious $1 billion valuation doesn’t seem to be in line with its current results. The company’s future has been clouded by the AI Pin’s inability to pique consumer interest and the bad news that followed. A buyer prepared to assume the risk may nonetheless find Humane’s cutting-edge technology and possible intellectual property appealing in spite of these obstacles.
The tale of Humane serves as a warning about the high stakes and sudden changes in fortune that businesses might encounter in the cutthroat world of software startups. It remains to be seen if Humane can find a buyer ready to pay its high asking price, but its current course emphasizes how challenging it is to introduce and maintain a new digital product in a crowded industry.
