Humane, the once-hyped startup behind the AI Pin device, is being sold to HP Inc. for $116 million, the company announced recently. HP has agreed to acquire Humane’s AI capabilities, including its software platform, intellectual property, patents, and talent. The AI Pin will be discontinued, Humane said in a message to customers.
The $699 AI Pin was marketed as a potential smartphone replacement, backed by aggressive pre-launch activities, including glitzy ads and high-profile events such as Paris Fashion Week. Time magazine named the AI Pin one of the best inventions of 2023. However, the device was poorly received, with reviews highlighting its shortcomings, ultimately leading to its failure.
Humane was founded in 2019 by Imran Chaudhri and Bethany Bongiorno, a husband-and-wife duo who previously worked at Apple. Chaudhri, in particular, played a key role in shaping the iPhone’s interface during his time at Apple. The duo pitched the AI Pin as a groundbreaking wearable device designed to transform AI into a conversational, screenless experience. However, things started to change when the company began shipping the device to customers. The AI Pin was plagued by overheating issues, and its AI software frequently provided inaccurate responses. Humane initially hoped to sell 100,000 units in its first year but received only around 10,000 orders.
About a week after the reviews were published, Humane began discussions with HP, a major computer maker, about selling the company for more than $1 billion. There were other bidders as well, though talks remained informal. Last year, Humane hired an investment bank to explore a sale while also seeking new funding. The San Francisco-based company had raised $240 million from high-profile Silicon Valley investors, including OpenAI CEO Sam Altman and Salesforce CEO Marc Benioff, who valued the startup at $1 billion based on its ambition and promise. Humane spent five years developing the AI Pin, according to its founders.
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 a new 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.
