HP to Acquire Humane’s AI Assets for $116 Million, Shutting Down the Ai Pin Device

In a strategic move, HP has announced it will acquire key assets from Humane, the maker of the wearable Ai Pin device introduced in late 2023. The deal, valued at $116 million (approximately Rs. 1,007 crore), will include the majority of Humane’s employees, software platform, and intellectual property. However, it will not involve Humane’s Ai Pin device business, which is set to be discontinued.

A New Chapter for Humane’s Founders at HP

Humane’s founders, Imran Chaudhri and Bethany Bongiorno, who previously worked as design and software engineers at Apple, will play a pivotal role in HP’s new division focused on integrating artificial intelligence into HP’s personal computers, printers, and connected conference rooms. Tuan Tran, who leads HP’s AI initiatives, expressed admiration for the innovative AI models developed by Humane, particularly the combination of on-device and cloud-based AI.

“Humane’s approach to AI will be a game-changer for the future of our devices,” said Tran, highlighting how this technology could enhance HP’s future products. The acquisition is expected to be finalized by the end of this month.

Humane’s Struggles with the Ai Pin

Launched in April 2024, the Ai Pin was designed to offer a futuristic, wearable AI device capable of managing calls, texts, and various AI models via voice or gesture. The startup initially pitched the Ai Pin as a potential smartphone replacement. However, the device faced significant challenges, including negative reviews, glitches, and even a “quality issue” that led to concerns about a possible fire hazard.

Despite having raised over $230 million and attracted investors like Salesforce CEO Marc Benioff, Humane struggled to maintain momentum. Following these issues, the company decided to halt sales of the Ai Pin. Existing devices will no longer connect to Humane’s servers after 12 PM San Francisco time on February 28, 2024. Humane has urged customers to sync their devices and back up their data before the deadline to avoid losing photos, videos, and notes.

The Shift from Hardware to Software

In recent months, Humane pivoted from focusing on hardware to rebranding itself around Cosmos—a new AI operating system. Cosmos was designed for various devices, with an architecture built around AI agents. This shift away from hardware allowed Humane to concentrate on AI solutions for a broader range of products.

HP’s acquisition of Humane’s software platform and intellectual property gives the company a robust foundation for incorporating AI into future devices. HP has emphasized the benefits of running some AI features locally on devices rather than relying on the cloud, promising improvements in cost, security, and speed.

HP’s Vision for the Future of AI in Devices

HP’s acquisition of Humane fits into its broader strategy of integrating AI across its product lineup. While there may be room for standalone AI devices in the future, HP’s current focus is on embedding AI into its existing devices. According to Tran, “There will be a time and place for pure AI devices, but for now, integrating AI into our devices will significantly enhance productivity for our business customers.”

The integration of on-device AI will be particularly beneficial for HP’s computing and printing solutions. The company has already launched computers with semiconductors optimized for on-device AI, and this acquisition is expected to further strengthen its position in the AI-driven tech market.

What This Means for HP and the Future of AI

With the acquisition of Humane’s assets, HP is positioning itself to lead the way in integrating advanced AI technology into everyday devices. As the company moves toward incorporating AI into personal computers, printers, and connected workspaces, consumers can expect to see smarter, more efficient products in the near future.

This deal highlights a key trend in the tech industry: the growing importance of artificial intelligence in shaping the next generation of devices. While Humane’s Ai Pin device may not have lived up to expectations, the underlying technology and the expertise of its founders have now found a new home at HP. The future of AI integration in consumer products has never looked more exciting.

HP’s ability to blend AI with its existing product range may help reshape how we interact with technology on a daily basis, providing more intelligent, personalized, and seamless experiences.