Humane Inc. Discontinues AI Pin, Sells Assets to HP for $116 Million

Humane Inc. has made the decision to discontinue its AI Pin device and sell its assets to HP Inc. for $116 million. The AI Pin will stop connecting to Humane’s servers after 3 PM ET on February 28.

What Happened: On Tuesday, Humane released a support document stating that after February 28, users will still be able to access offline functions, such as checking the battery levels. However, voice interactions and cloud-based features will no longer be available.

Humane will offer refunds to customers who are still within the 90-day return window.

See Also: Potential iPhone Killer? Humane AI Pin’s Design Criticized by Experts

As part of the acquisition, HP will obtain Humane's AI operating system known as CosmOS, along with over 300 patents and the existing technical staff. Co-founders Imran Chaudhri and Bethany Bongiorno will lead a new AI-focused division at HP, as reported.

Why It Matters: The AI Pin, which has been referred to as a potential “iPhone killer,” faced significant hurdles since its launch. The device initially received overwhelmingly negative reviews, with returns outpacing sales during the period from May to August 2024.

By June, it was revealed that only about 8,000 units were still with consumers, and daily returns exceeded purchases.

Humane encountered another issue last year when it advised users to stop using the AI Pin’s charging case due to potential fire hazards linked to charging problems, further damaging the product's reputation.

In an effort to enhance the AI Pin's performance, Humane integrated OpenAI’s GPT-4o model in May 2024, claiming improvements in speed and accuracy, with a reported 14% decrease in latency and 33% fewer incorrect responses. However, these enhancements were not enough to salvage the product.

Ultimately, the combination of disappointing sales, technical challenges, and poor reviews prompted Humane to sell its AI Pin assets to HP. This move marks the conclusion of a difficult chapter for the company.

Price Action: Following the announcement, HP's stock saw a slight decline of 0.088%, reaching $34.17 in after-hours trading. This came after a 1.66% increase, closing at $34.20 during the market day.

Photo via Shutterstock

Humane, HP, AIPin