HP acquires Humane, shuts down AI Pin designed to replace smartphones

Humane, the AI hardware startup known for its AI Pin, has been acquired by HP for $116 million. The company announced on Tuesday that it will immediately discontinue sales of the $499 wearable device.

Customers who own the AI Pin have been notified that their devices will cease to function by February 28, 2025, at 12 PM PST. Post this date, the AI Pin will not connect to Humane's servers, rendering it unusable for calls, messaging, AI interactions, or cloud access. Humane has advised users to back up their data promptly. Additionally, the company's customer support will be shut down on the same day.

In their blog, Humane said, "We are writing to inform you that, effective immediately, we are winding down the consumer Ai Pin as our business priorities have shifted."

Humane, founded by former Apple employees Bethany Bongiorno and Imran Chaudhri, raised over $230 million for the development of the AI Pin, which launched in April 2024. Marketed as a potential smartphone replacement, the device faced challenges with negative reviews and slow adoption. Issues arose quickly, with early adopters expressing dissatisfaction, and returns reportedly surpassing sales by mid-2024. Users were cautioned against using the AI Pin's charging case due to fire hazards. In October 2024, Humane reduced the price of the AI Pin by $200 to spark interest.

Initially, Humane sought a larger acquisition deal in mid-2024, aiming for a valuation between $750 million and $1 billion, but settled for a lesser amount.

HP plans to integrate Humane's engineers and product managers into a new division called HP IQ, which will focus on AI innovation across HP products, including PCs and printers. HP will also acquire Humane's CosmOS AI operating system, showcased as capable of running on various devices such as cars, smart speakers, TVs, and Android phones. With this acquisition, HP appears to be investing in AI-powered ecosystems, though it remains to be seen how Humane's technology will be integrated into HP's offerings.