In a significant development for the AI hardware market, HP Inc. has finalized a $116 million acquisition of key assets from AI startup Humane, while the company's flagship AI Pin wearable device is being discontinued.
The deal, announced on February 18, 2025, includes Humane's AI-powered platform Cosmos, intellectual property with over 300 patents and patent applications, and a substantial portion of Humane's technical talent. Notably, the acquisition excludes the AI Pin device business itself, which will be wound down immediately.
Humane co-founders Imran Chaudhri and Bethany Bongiorno, former Apple executives, will join HP along with their engineering team to form HP IQ, a new AI innovation lab. This lab will focus on developing an intelligent ecosystem across HP's products, from AI PCs to smart printers and connected conference rooms.
"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," said Tuan Tran, President of Technology and Innovation at HP.
The AI Pin, which launched in April 2024 for $699 (later reduced to $499) plus a $24 monthly subscription, failed to gain market traction despite significant hype. The screenless wearable device, which projected information onto users' hands and operated primarily through voice commands, received largely negative reviews citing poor battery life, overheating issues, and limited functionality. Humane had aimed to sell 100,000 units but reportedly shipped only about 10,000, with returns eventually outpacing sales.
Existing AI Pin owners will have access to the device's full functionality until February 28, 2025, after which cloud-dependent features including calling, messaging, and AI queries will cease to function. Humane is offering refunds to customers who purchased the device within the last 90 days.
The acquisition represents a significant markdown from Humane's reported valuation of $850 million and the $230 million it had raised from investors including Microsoft, Qualcomm Ventures, OpenAI CEO Sam Altman, and Salesforce CEO Marc Benioff.