HP announced that it has acquired an AI assist wearable device startup company Humane which developed the now infamous Ai pin device. HP is getting 300 patents and patent applications, some of its employees and other Intellectual property from the deal. HP plans to integrate Humane's IP and expertise with its existing portfolio of consumer products. However, the Ai Pin devices are not a part of this deal, and from February 28, AI Pin's cloud software will no longer be available. Humane assured it will be processing refunds for recent purchases, including for its subscription plans.
Humane's founders Imran Chaudri and Bethany Bongiorno who were design and software engineers for Apple Inc. will be forming a new division called 'HP IQ' in the company and be responsible for integrating AI in HP printers, PC and other devices.
The company mentions its wearable devices will function until 12 PM PST on February 28, 2025, after which its Ai Pin's cloud-based features will no longer be available. Functions like calling, messaging, cloud access and other AI-enabled assist features will no longer work after the deadline, essentially becoming a bricked device. The company does make an assurance that it will delete the remaining consumer data permanently and hence requests its customers to download any vital data before the deadline. Those who purchased Ai Pin for US$ 700 in the last 90 days are eligible for a refund once a request is made, including those who have purchased subscription plans that amount to US$ 24 a month. The company however has not addressed refunds for those who have purchased at an earlier date- including the early adopters. The acquisition is expected to be completed by the end of this month.
Humane Ai was hyped as a wearable Ai-enabled assist device projecting its interface on the user's hand and any surface to interact. Despite potential applications, a plethora of features and promising ideas, the company alienated many of its consumers with overpriced subscriptions, quality control, glitches and service issues for a device with features that eventually began to appear in smartphones. The company was founded in 2023 and started looking for a buyer in May 2024 with an asking price of up to US$ 1 billion. HP however acquired the company for US$ 116 million.
HP does have AI-powered printers and hence it would make sense to acquire Humane for its expertise and patents rather than for its device. Even though the Ai Pin is a flop, absorbing patents, intellectual property and expertise should help catapult HP to achieve its goals. The company doesn't seem to be having any plans to have a dedicated AI device for the foreseeable future. In a statement to Bloomberg, Tuan Tran, President of Technology and Innovation at HP said, "There will be a time and place for pure AI devices But there is going to be AI in all our devices — that’s how we can help our business customers be more productive.”
It will be interesting to see how HP intends to integrate AI with PC and printers with Humane's IP and personnel. Acquiring a subscription AI wearable device seems fitting for the company as it is known to explore subscriptions but it remains to be seen if it will have any success.
