HP Inc. announced it will invest $116 million to acquire key assets of Humane Inc., a startup established by former Apple executives, as it attempts to boost its artificial intelligence (AI) capabilities. Humane’s custom operating system, CosmOS, a portfolio of more than 300 patents, and a large majority of its employees are all included in the transaction. Humane’s bold foray into wearable AI tech, in particular its AI Pin product that had tried to redefine personal computing but struggled heavily in the marketplace, ended with the transaction.
The AI Pin and Humane’s Vision Humane was founded in 2018 by Apple alumni Imran Chaudhri and Bethany Bongiorno with the goal of disrupting the personal computer market with the AI Pin, a wearable product that is intended to take the place of conventional cell phones. With its voice assistant, camera, and projector that projected information onto the user’s hand, the $699 AI Pin introduced a novel method of human-computer interaction. The AI Pin fails to take off in the market despite its innovative idea. Critics pointed to problems with short battery life, overheating, and poor user experience in the device’s largely negative reviews following its release in April 2024. These setbacks were reflected in sales numbers, which showed that between May and August 2024, more units were returned than sold. According to internal estimates, Humane had aimed to ship 100,000 units in the first year, but only around 10,000 were shipped, and the number of devices that were still in customers’ hands dropped to around 7,000. Due to these difficulties, Humane began exploring strategic alternatives, which initiated talks with potential purchasers. According to early estimates in mid-2024, Humane was looking for a valuation of $750 million to $1 billion. However, a much lower estimate of $116 million was used to reach the final deal with HP.
The Strategic Acquisition of HP
HP is making a strategic choice through this acquisition to expand its product line of wearable and AI technologies. HP anticipates that it will be able to speed up the creation of AI-driven products and services with the acquisition of Humane’s assets. CosmOS and the other technologies that were acquired are going to be integrated into HP’s current product portfolios by creating a new subsidiary called HP IQ, which may result in breakthrough computing solutions that would integrate AI into everyday life effortlessly. This action is consistent with HP’s overall strategy of diversifying its product line and keeping up with the rapidly evolving technology industry.
Industry and Market Outlook Humane’s AI Pin showcases how challenging it is to introduce innovative technology to a highly competitive market. The collapse of AI Pin after securing an investment of more than $230 million from some of the world’s best-known technology firms and entrepreneurs underscores the importance of aligning product offerings with customer preferences and ensuring consistency in performance. With its acquisition of Humane’s assets, HP is making a calculated gamble that may propel the company into growth in wearables and artificial intelligence space. By incorporating Humane’s IP and talent, HP sets itself up to innovate and potentially shift the paradigms of personal computing. Yet HP’s success in actually integrating these assets and addressing the issues that have bedeviled the AI Pin will determine the fate of the endeavor. HP’s $116 million purchase of Humane’s crown jewels is a significant inflection point for the two companies. While Humane’s grand plan to utilize the AI Pin to transform personal computing did not pan out as planned, the fact that the company’s tech and talent are heading to HP creates new potential for innovation. The world of tech will be following HP’s integration carefully to see how it will impact artificial intelligence-driven wearable and personal computer technologies in the future.
