Humane is Shutting Down the AI Pin and Selling Its Remnants to HP

In a significant move that marks the end of an ambitious chapter in tech innovation, Humane, the AI wearable startup, has announced the shutdown of its AI Pin device. The company has reached a deal to sell key assets to HP for $116 million, signaling a major pivot in its strategy. This acquisition underscores HP’s push to strengthen its position in the rapidly evolving AI landscape.

The deal includes Humane’s AI-powered Cosmos platform, a treasure trove of over 300 patents and patent applications, and a team of skilled engineers, architects, and product innovators. These assets will form the backbone of HP’s new AI innovation lab, HP IQ, which aims to develop intelligent ecosystems across HP’s products and services. Notably, the AI Pin device business is not part of the acquisition and will be discontinued.

Launched in November 2023, the AI Pin was touted as a revolutionary wearable AI assistant. However, it failed to gain traction due to poor reviews and functionality issues. The device will officially cease functioning on February 28, 2025, when it loses connectivity to Humane’s servers. This abrupt end to the AI Pin’s journey highlights the challenges of delivering on ambitious promises in the competitive tech space.

For HP, this acquisition is a strategic step to accelerate its AI capabilities in personal computing. Tuan Tran, HP’s President of Technology and Innovation, emphasized that the deal will enable the company to develop a new generation of devices capable of seamlessly orchestrating AI requests both locally and in the cloud. This move aligns with HP’s broader goals to innovate and stay competitive in the AI-driven future.

Humane, founded by ex-Apple designers Imran Chaudhri and Bethany Bongiorno, had raised approximately $241 million from high-profile investors, including OpenAI CEO Sam Altman. Despite substantial funding and initial hype, the company struggled to deliver on its vision of a “smartphone killer.” The AI Pin’s underwhelming performance and user experience issues were significant setbacks.

The $116 million deal is a far cry from Humane’s previous valuation. In May 2024, the company had reportedly sought to be acquired for between $750 million and $1 billion. This stark difference reflects the challenges Humane faced in translating its ambitious vision into a viable product.

The acquisition is expected to close at the end of February 2025. As part of the deal, Humane’s co-founders, Chaudhri and Bongiorno, will join HP, expressing enthusiasm about shaping the future of intelligent experiences. This transition marks the end of Humane’s attempt to redefine personal technology and the beginning of a new chapter for its talent and technology under HP’s umbrella.

HP’s Strategic Play and Humane’s Rocky Journey

The acquisition of Humane’s assets by HP for $116 million marks a strategic maneuver to bolster HP’s AI capabilities. This deal is pivotal as it includes Humane’s AI-powered Cosmos platform, an extensive portfolio of over 300 patents and applications, and a skilled team of engineers and innovators. These resources will be integral to HP’s newly formed AI innovation lab, HP IQ, which aims to create seamless AI ecosystems across HP’s product range. Notably, the AI Pin device, once hailed as a revolutionary wearable, is excluded from the deal and will cease operations on February 28, 2025, leaving users without support.

The AI Pin, launched in November 2023, was envisioned as a “smartphone killer,” yet it faltered due to poor user reviews and functionality issues. This shutdown underscores the challenges Humane faced in realizing its ambitious vision, despite substantial funding from prominent investors like Microsoft and OpenAI’s CEO, Sam Altman. The stark markdown from Humane’s earlier valuation of $750 million to $1 billion to the final $116 million sale highlights the difficulties in translating promising ideas into successful products.

HP’s move to establish HP IQ lab signifies a commitment to innovation, leveraging the acquired assets to enhance AI integration in their devices. The lab will focus on developing intelligent systems that can manage AI tasks both locally and in the cloud, aligning with HP’s strategy to stay competitive in the AI-driven market.

The transition also brings Humane’s co-founders, Imran Chaudhri and Bethany Bongiorno, to HP, where they will contribute their expertise to shaping future technologies. This shift marks the end of Humane’s quest to redefine personal tech but opens a new chapter under HP’s umbrella, blending their talent and technology to drive innovation forward.

Conclusion

The shutdown of Humane’s AI Pin and the sale of its assets to HP for $116 million mark a significant shift in the tech landscape. While Humane’s ambitious vision for redefining personal technology fell short, its legacy lives on through HP’s strategic acquisition. The acquisition underscores HP’s commitment to advancing AI capabilities, particularly in personal computing, and positions the company to innovate in a rapidly evolving market.

The AI Pin’s discontinuation serves as a reminder of the challenges in turning groundbreaking ideas into successful products. Despite substantial funding and visionary leadership, Humane faced insurmountable hurdles in delivering on its promises. Meanwhile, HP’s acquisition of Humane’s Cosmos platform, patents, and team signals a new chapter in its AI journey, with the establishment of HP IQ lab aimed at creating seamless AI ecosystems.

This deal highlights the dynamic nature of the tech industry, where innovation and strategic moves can redefine a company’s trajectory. As HP moves forward with its AI ambitions, the shutdown of the AI Pin closes a chapter on Humane’s attempt to revolutionize wearable AI technology.

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