HP acquires Humane for $116M, shuts down AI Pin wearable
What's the story
HP has announced its acquisition of Humane, the innovative start-up behind the Ai Pin device.
The deal, which is worth $116 million, includes Humane's artificial intelligence capabilities, software platform, intellectual property rights and patents.
Some employees from Humane will also transition to HP as part of this agreement.
However, the Ai Pin device will be discontinued as per a statement from Humane to its customers.
Company history
Humane's journey and vision for Ai Pin
Founded by Apple veterans Imran Chaudhri and Bethany Bongiorno, Humane envisioned a wearable that could replace smartphones.
This vision culminated in the $699 Ai Pin, a device that could be clipped onto clothing and controlled via voice or laser display on the user's hand.
Despite heavy promotion and high-profile investors like Marc Benioff (Salesforce CEO) and Sam Altman (OpenAI CEO), the product fell short of its sales target.
Market response
Ai Pin's market performance and HP's future plans
The Ai Pin garnered mixed reviews owing to problems with its AI software and battery overheating.
Humane had initially hoped to sell 100,000 pins in its first year but only managed to get around 10,000 orders. After this, Humane sought new funding and even considered selling itself for over $1 billion.
Meanwhile, HP has shown interest in bringing AI capabilities into its laptops. Last year alone, the company partnered with Microsoft on a range of AI computers called Copilot+ PCs.
Integration plan
HP's vision for acquired technology and personnel
HP plans to use Humane's technology to evolve into a more "experience-led company."
The employees from Humane will be brought into a new innovation lab called HP IQ. It will focus on creating an intelligent ecosystem across HP's products and services.
Both Chaudhri and Bongiorno, as well as most of the start-up's staff, will be joining HP, a company spokesperson said.
CEO statement
HP's commitment to AI innovation
Enrique Lores, President and CEO of HP, had also highlighted the company's dedication toward AI during an analyst call in November.
He had said, "We are investing and innovating aggressively in new AI-powered capabilities and software."
The acquisition is in line with HP's strategic focus on making its products better with cutting-edge technology.