HP Acquires Humane to Enhance AI in Devices

HP is taking significant steps to strengthen the artificial intelligence (AI) capabilities in its notebooks, tablets, and communication devices through the acquisition of Humane, a company known for developing a wearable AI device called the AI Pin.

Initially, the founders of Humane valued their company between $1.18 billion and A$1.6 billion. However, due to a series of negative reviews and issues surrounding their AI Pin, the company ultimately agreed to sell to HP for just $182 million.

This acquisition will also bring most of Humane's staff, its software platform, and its intellectual property under HP's wing. Despite this, HP has decided to shut down Humane's AI Pin product line, instead intending to create a new division. This new segment will leverage the AI expertise and intellectual property of Humane's employees to expand HP's AI offerings.

Key members of Humane, including co-founders Imran Chaudhri and Bethany Bongiorno, who previously worked as design and software engineers at Apple, will lead this new divison. They are tasked with integrating AI technologies into HP’s range of personal computers, printers, and connected conference room devices.

Humane made headlines back in April 2024 when it launched its highly anticipated wearable AI device aimed at providing users with access to AI models, phone calls, and text messaging using voice commands or gestures. The startup intended for the AI Pin to serve as a smartphone replacement, but it failed to gain traction and faced significant criticism from tech media outlets. After reports highlighted glitches and safety concerns over a potential fire hazard, HP chose to discontinue production of the device.

Humane had raised over $230 million in funding, with notable investors including Salesforce's CEO Marc Benioff. According to a report from Bloomberg, HP’s Vice President, Tran, expressed admiration for several aspects of Humane's design, particularly its ability to manage AI models both on the device and through cloud computing.

The acquisition is expected to be finalized by the end of the month, as HP outlines its plans for the integration of AI technology. At one point, Humane attempted to pivot its branding towards an AI operating system named Cosmos, designed for a variety of home and portable devices.

This new architecture centered around AI agents could potentially be incorporated into HP's product lineup. HP’s history includes a notable mishap with the commercial launch of WebOS after acquiring it from Palm. The software, initially developed by Palm as a mobile operating system in 2009 and modified for various devices, was ultimately sold to LG Electronics when the launch failed.

HP is emphasizing the cost efficiency, security, and speed that come from embedding certain generative AI features directly within devices, rather than relying solely on cloud services. The company recently released a new series of computers with semiconductors designed specifically for on-device AI operations.

As Tran stated, "While there will be a time for pure AI devices, AI features will integrate into all our devices. This is crucial for enhancing productivity for our business customers."

HP, AI, Humane