Humane, the once-promising AI hardware startup, has been acquired by HP for $116 million. The company announced on Tuesday that it is immediately discontinuing sales of its AI Pin, a wearable AI assistant priced at $499.
The AI Pin, which launched in April 2024, was positioned as a futuristic replacement for smartphones. Founded by former Apple executives Bethany Bongiorno and Imran Chaudhri, Humane raised over $230 million to develop the device. Despite the hype, the AI Pin failed to meet expectations, drawing criticism from early reviewers and customers who found it overpriced and underwhelming. Reports suggested that by mid-2024, the company was processing more returns than new sales.
Further compounding its troubles, Humane warned users to stop using the device’s charging case due to potential fire hazards. In an attempt to salvage its fortunes, the company reduced the AI Pin’s price from $699 to $499, but this was not enough to turn things around.
As part of the shutdown, Humane will dissolve its AI Pin customer support team on February 28. Refunds will be offered only to customers who purchased the device within the past 90 days, leaving early adopters without an option for reimbursement.
HP’s acquisition of Humane will focus on integrating the startup’s technology and talent into a newly formed division called HP IQ. This group will specialize in artificial intelligence innovations, aiming to enhance HP’s ecosystem of PCs, printers, and enterprise solutions. Among the assets HP is acquiring is CosmOS, Humane’s AI-powered operating system. Recent promotional material from Humane suggested CosmOS could run on various devices, including smart speakers, car entertainment systems, TVs, and Android phones. HP may leverage this technology to expand AI integration across its product lineup.
Humane’s sale to HP comes at a significantly lower valuation than the company had initially sought. In May 2024, the startup was looking for a buyer willing to pay between $750 million and $1 billion, according to Bloomberg. However, following the AI Pin’s commercial struggles, the company settled for a much lower $116 million deal with HP.