Humane’s $116m acquisition by HP: A Humbling Tale within the AI Hardware Hype

Humane had all the makings of the next big thing—ex-Apple pedigree, a sleek (honestly good-looking) AI Pin that promised to replace your smartphone, and a cool $230 million in funding. But in a plot twist that’s equal parts predictable and painful, HP just scooped up its remnants for a modest $116 million. And with that, Humane is hitting the off switch—literally—on its AI Pin, which will become a glorified paperweight by February 28, 2025.

From Hype to History

Let’s be honest—Humane’s AI Pin was a tough sell from day one. A $699 one-time (later $499) wearable with a $24 monthly cost, with no screen, a weak battery, and a questionable use case? In a world where people can’t put their smartphones down for five seconds, convincing them to replace it with a pin that struggled with basic functions was always a long shot.

The device’s slow death spiral became official when reports surfaced that returns were outpacing sales. Then came the infamous fire hazard warning for the charging case.

The AI Hardware Curse?

This isn’t the first time an ambitious AI gadget hasn’t quite lived up to the expectations created by sleek and carefully edited ads. Google Glass, Magic Leap, and Essential’s PH-1—history is littered with ‘disruptive’ products that underestimated how hard it is to change consumer habits. AI-powered wearables sound futuristic, but people aren’t ready to abandon screens just yet.

Lessons and Next Steps for AI Hardware Innovators

For founders dreaming of the next big AI gadget, Humane’s journey offers valuable insights. A bold vision is great, but execution is everything. The key takeaways?

• Find a real problem to solve. AI should enhance convenience, not force users to change habits overnight.

• Test usability extensively. If the product is too ahead of its time, the market might not be ready.

• Balance innovation with practicality. Exciting tech is only as good as the user experience it delivers.

Humane's story is a lesson for the entire industry, maybe consumers are not ready to abandon their beloved phones just yet. AI wearables may still have a place in the future, but the next attempt will need a sharper strategy, better product-market fit, and fewer fire hazards.

Humane’s story will help us build the future of human-machine interaction at Light and the many devices that it will bring to life.