HP Acquires Humane for $116 Million, Discontinues AI Pin Wearable

HP has officially announced the acquisition of Humane, the innovative AI startup known for its futuristic AI Pin wearable device. The deal, valued at $116 million, grants HP access to Humane’s advanced artificial intelligence capabilities, proprietary software platform, intellectual property rights, and patents. Additionally, some employees from Humane will transition to HP as part of the acquisition process.

However, despite this acquisition, Humane has decided to discontinue the AI Pin, as per an official statement from the company to its customers. The move signals a shift in focus for the startup’s technology under HP’s leadership.

Humane’s Journey and the AI Pin Vision

Humane was founded by Apple veterans Imran Chaudhri and Bethany Bongiorno with the ambitious goal of developing a wearable device capable of replacing smartphones. This vision led to the creation of the AI Pin, a $699 clip-on wearable powered by artificial intelligence, offering voice commands and a laser-projected display onto the user’s hand.

Despite substantial backing from notable investors such as Marc Benioff (Salesforce CEO) and Sam Altman (OpenAI CEO), the AI Pin failed to gain significant traction in the market. Humane’s bold vision of redefining personal AI assistants met with technological hurdles and lukewarm customer adoption.

Market Response and Humane’s Struggles

The AI Pin’s performance in the market was met with mixed reviews, with many users citing issues such as software limitations and battery overheating. Humane had initially aimed to sell 100,000 units in its first year but fell drastically short, securing only around 10,000 orders.

As sales struggled, the company explored new funding opportunities and even considered selling itself for over $1 billion. Eventually, it opted for the acquisition by HP, which is now looking to leverage Humane’s AI expertise for its own technological ecosystem.

HP’s Plans for Humane’s Technology and Employees

HP has expressed a keen interest in integrating Humane’s cutting-edge AI technology into its broader portfolio. The acquired assets and personnel will be incorporated into HP IQ, a new innovation lab dedicated to developing intelligent AI-powered solutions.

HP aims to evolve into a more "experience-led company", enhancing the user experience across its product lineup. Most of Humane’s employees, including founders Chaudhri and Bongiorno, will be joining HP as part of the transition.

HP’s Commitment to AI Innovation

HP CEO Enrique Lores has been vocal about the company’s aggressive push toward AI innovation. In a November analyst call, he emphasized,
"We are investing and innovating aggressively in new AI-powered capabilities and software."

This acquisition aligns with HP’s broader strategy of integrating artificial intelligence into its products, particularly its AI-driven laptops and computing solutions. HP recently collaborated with Microsoft to launch Copilot+ PCs, showcasing its ambition to bring next-generation AI experiences to its users.

Conclusion

HP’s acquisition of Humane marks a significant shift in the AI technology landscape. While Humane’s AI Pin did not achieve mainstream success, its technological innovations and AI expertise have found a new home within HP. By incorporating Humane’s assets and personnel into the HP IQ innovation lab, HP is reinforcing its commitment to developing advanced AI-driven experiences for users.

As AI continues to reshape the technology industry, HP’s move underscores a growing trend where tech giants are rapidly acquiring AI startups to stay ahead of the curve. While the AI Pin’s journey has ended, its underlying innovations may fuel future AI-powered products under HP’s leadership.