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Humane’s AI Pin Fails to Take Off as HP Acquires Startup’s Assets

Humane’s ambitious AI Pin project has officially come to an end, with HP acquiring most of the startup’s assets for $116 million. The company announced on Tuesday that it is immediately discontinuing sales of its $499 AI Pin and will shut down support for existing devices by the end of the month.

According to a blog post, AI Pins will stop functioning at 12 p.m. PST on February 28, 2025, as they will no longer be able to connect to Humane’s servers. This means core features such as calling, messaging, AI-powered responses, and cloud access will become unusable. Humane has advised customers to transfer any important photos or data before the shutdown.

Additionally, the company will dissolve its AI Pin customer support team on February 28. While buyers who purchased the device within the last 90 days are eligible for a refund, earlier customers will not receive compensation, as stated in the company’s FAQ.

A Short-Lived AI Ambition

Humane initially generated excitement when it launched the AI Pin in April 2024, pitching it as a futuristic alternative to smartphones. The startup, founded by former Apple executives Bethany Bongiorno and Imran Chaudhri, raised over $230 million to develop the device.

However, early reviews and customer feedback were largely negative, citing performance issues and limited practicality. By mid-2024, returns reportedly outpaced sales, according to The Verge. The company also suffered a major setback when it warned customers to stop using the AI Pin’s charging case due to a fire hazard. In an effort to attract more buyers, Humane reduced the device’s price from $699 to $499 in October 2024, but the move failed to revive interest.

HP’s Plans for Humane’s Technology

With this acquisition, HP is taking on Humane’s engineers and product managers, who will form a new division within the company called HP IQ. This AI-focused innovation lab will work on integrating intelligent systems across HP’s products and services, particularly in personal computing and workplace technology.

HP will also gain control of CosmOS, Humane’s AI operating system, which had been showcased in concept ads for use in smart speakers, car infotainment systems, televisions, and Android devices. While it remains unclear how HP will utilize the technology, it could play a role in enhancing AI features in HP’s PCs and printers.

A Deal Far Below Humane’s Expectations

Despite the $116 million deal, the acquisition marks a disappointing outcome for Humane. In May 2024, the company had reportedly sought a buyout between $750 million and $1 billion, according to Bloomberg. The failure of the AI Pin, coupled with declining consumer confidence, ultimately forced the startup to settle for a much lower valuation.

With Humane’s exit, the AI wearables market faces fresh challenges, raising questions about the viability of standalone AI-powered devices without a strong user base or seamless integration into existing ecosystems.

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