HP Inc. has announced the acquisition of key assets from Humane Inc., the startup renowned for its wearable AI device, the AI Pin.
This $116 million deal, disclosed on February 18, 2025, encompasses Humane’s AI-powered platform, CosmOS, a portfolio of over 300 patents and patent applications, and the integration of Humane’s technical team into HP’s workforce.
Notably, this acquisition does not include the AI Pin hardware, which Humane has decided to discontinue.
The Rise and Fall of the AI Pin
Launched in November 2023, the AI Pin was envisioned as a revolutionary wearable device designed to redefine personal computing.
Clipped onto the user’s clothing, it featured a camera to observe the environment and a miniature projector that displayed information onto the user’s hand.
Interaction was primarily through voice commands and gestures, aiming to provide a seamless, screen-free experience.
Despite the innovative concept, the AI Pin faced substantial challenges post-launch. Early adopters and reviewers highlighted several issues, including limited battery life, overheating, and inconsistent performance.
Tech critic Marques Brownlee described it as “The worst product I’ve ever reviewed… for now.” Such feedback, coupled with safety concerns over the battery clip potentially posing a fire hazard, severely impacted the device’s reputation and sales.
Sales Struggles and Company Valuation
Humane’s ambitious goal was to sell 100,000 units of the AI Pin within the first year. However, by August 2024, only 10,000 units had been shipped, with return rates surpassing sales during certain periods.
Internal data revealed that from May to August 2024, returns exceeded purchases, resulting in $1 million in returns and cancellations of thousands of units before shipment.
This underperformance led Humane to explore potential buyers, initially seeking a valuation between $750 million and $1 billion. Ultimately, HP’s acquisition was finalized at $116 million.
HP’s Strategic Acquisition
For HP, this acquisition represents a strategic enhancement of its AI capabilities. By integrating Humane’s AI assets, including the CosmOS platform and a substantial patent portfolio, HP aims to infuse advanced AI functionalities across its product spectrum.
The newly formed division, HP IQ, will focus on creating an intelligent ecosystem encompassing AI-powered PCs, smart printers, and connected conference rooms.
This initiative is poised to deliver enhanced functionality and user experiences, aligning with HP’s commitment to innovation in the AI domain.
Impact on AI Pin Users
With the discontinuation of the AI Pin, Humane has announced that existing devices will lose server connectivity and most functionalities, including calling and messaging, after 3 PM ET on February 28, 2025.
Users are advised to download any data from their devices before this cutoff. Refunds are being offered for units within a 90-day return window, and prorated refunds will be provided for subscriptions extending beyond the shutdown date.
Conclusion
The journey of the AI Pin underscores the challenges inherent in pioneering new technology sectors. While the device itself did not achieve commercial success, the underlying AI innovations have found a new avenue through HP’s acquisition.
This development highlights the dynamic nature of the tech industry, where continuous adaptation and integration of emerging technologies are essential for progress.
