HP's Acquisition of Humane
In a move that underscores the volatile nature of the tech industry, HP Inc. has acquired key assets of the beleaguered startup Humane for $116 million. This acquisition includes Humane's AI platform, Cosmos, over 300 patents, and a team of engineers and innovators. The transaction is expected to conclude by the end of February 2025.
Humane, once a darling of Silicon Valley, aspired to revolutionize personal technology with its AI Pin—a wearable device designed to serve as an AI-powered personal assistant. Despite raising over $230 million in funding and attracting high-profile investors like Sam Altman and Marc Benioff, the AI Pin faced significant challenges. Critics highlighted issues such as overheating, frequent AI errors, and a lack of practical functionality. These shortcomings led to widespread negative reviews and a high rate of product returns.
The acquisition by HP signals a strategic shift for both companies. HP plans to integrate Humane's technology and talent into a new AI innovation lab called HP IQ, aiming to develop intelligent ecosystems across its product lines, including PCs, printers, and conference solutions. Tuan Tran, President of Technology and Innovation at HP, stated, "This investment will rapidly accelerate our ability to develop a new generation of devices that seamlessly orchestrate AI requests both locally and in the cloud."
For existing AI Pin users, the news is less favorable. Humane has announced that the device will cease to function after February 28, 2025, as it will no longer connect to the company's servers. Refunds are being offered only to customers who purchased the device on or after November 15, 2024, leaving early adopters without compensation.
This development serves as a cautionary tale in the tech world, highlighting the risks of overpromising and underdelivering. While Humane's vision was ambitious, the execution fell short, leading to its acquisition and the discontinuation of its flagship product. As HP integrates Humane's assets, it remains to be seen how this infusion of AI technology will influence HP's future offerings and whether it can succeed where Humane did not.
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