In a significant move that reshapes the landscape of AI-powered devices, HP Inc. has acquired key artificial intelligence assets from Humane for $116 million. This acquisition marks the end of Humane’s ambitious AI Pin project and signals a new chapter in HP’s journey towards AI-integrated computing solutions.
The deal encompasses Humane’s AI-powered platform Cosmos, technical talent, and intellectual property, including over 300 patents and patent applications. As part of the agreement, Humane’s engineering team will transition to HP, forming a new AI innovation lab called HP IQ within the company’s Technology and Innovation Organization.
This acquisition comes in the wake of Humane’s struggles with its AI Pin, a device that aimed to replace smartphones but faced significant challenges in the market. Despite raising over $230 million in funding and generating considerable buzz, the AI Pin received poor reviews, suffered from technical issues, and struggled with sales. The company had to reduce the price from $699 to $499 due to sluggish demand, and reports of returns outpacing sales further compounded their difficulties.
For existing AI Pin users, this acquisition spells the end of their devices’ functionality. Humane has announced that all AI Pin services will cease to function on February 28, 2025, at 12 PM PST. After this date, the devices will no longer be able to connect to Humane’s servers, rendering them incapable of performing core functions such as calling, messaging, AI queries/responses, or cloud access.
HP’s Vision for AI Integration
With this acquisition, HP aims to accelerate its development of AI-integrated devices and create an intelligent ecosystem across its product line. The company plans to leverage Humane’s AI capabilities to enhance user experiences and develop new AI-powered solutions that can seamlessly orchestrate AI requests both locally and in the cloud.
Here are five ways HP IQ’s lab is expected to utilize Humane’s AI assets:
AI-Enabled PCs: Integrating Humane’s CosmOS AI operating system into HP’s personal computers to enhance productivity and user interaction.
Smart Printers: Developing AI-powered features for HP’s printer line to improve document processing and printing efficiency.
Connected Conference Rooms: Creating intelligent solutions for workplace collaboration, potentially revolutionizing how meetings are conducted and managed.
Cross-Device AI Ecosystem: Building a seamless AI experience that spans across various HP devices, allowing for better synchronization and data sharing.
Future of Work Solutions: Leveraging Humane’s AI expertise to develop innovative products and services tailored for the evolving workplace landscape.
Implications for the Tech Industry
This acquisition aligns closely with HP’s strategic transformation towards experience-driven computing and AI-powered devices. By integrating Humane’s AI capabilities, HP positions itself to compete more effectively in the growing market for AI-enabled devices and workplace solutions.
The move also underscores the challenges faced by startups in the wearable AI device market. Humane’s experience with the AI Pin highlights the importance of addressing real consumer needs and ensuring product reliability before launch. Despite a strong team and substantial resources, creating a new product category that aims to replace deeply ingrained technologies like smartphones proved to be a formidable challenge.
As part of the deal, Humane co-founders Bethany Bongiorno and Imran Chaudhri will join HP, bringing their expertise in AI and user experience design to the tech giant. This influx of talent, combined with Humane’s innovative AI platform, could potentially give HP an edge in developing next-generation computing solutions.
The Road Ahead
As HP integrates Humane’s AI assets into its operations, the tech industry will be watching closely to see how these capabilities translate into new products and services. The formation of HP IQ as a dedicated AI innovation lab signals the company’s commitment to making AI a central part of its future product development and innovation strategies.
While the acquisition marks the end of Humane’s independent journey, it opens up new possibilities for AI integration in everyday computing devices. As HP works to leverage these newly acquired assets, consumers can expect to see more intelligent, connected experiences across a wide range of products in the coming years.
The acquisition serves as a reminder of the rapid evolution in the AI and wearable technology sectors. As companies continue to push the boundaries of what’s possible with AI integration, the lessons learned from Humane’s AI Pin experience will likely inform future product development strategies across the industry.
