HP is in talks to acquire Humane AI, the company behind the AI Pin, for over $1 billion. The AI Pin, a wearable AI computer priced at $699, has faced negative reviews due to performance and overheating issues. Negotiations for the sale began about a week after these reviews surfaced. The reported sale price aligns with a previous Bloomberg report stating Humane was seeking between $750 million and $1 billion. The controversy surrounding the AI Pin has resulted in poor sales.
Potential $1 Billion Buyout of Humane by HP
Rumors suggest that HP might be looking to purchase Humane, the company behind the AI Pin. Priced at $699, the AI Pin did not impress reviewers, sparking acquisition talks. Critics pointed out several problems, especially with performance and overheating.
Humane didn’t handle the feedback well. Reports indicated that executives resorted to using ice packs to keep the AI Pin cool enough to work. Additionally, a senior software engineer was allegedly fired for questioning the AI Pin’s readiness for launch, violating the company’s policy against negative internal talk. These controversies have led to low sales, with only about 10,000 orders by early April, far short of their target of 100,000 units for the year.
The Story Behind Humane and the AI Pin
Humane, founded by former Apple employees Imran Chaudhri and Bethany Bongiorno, has been in the news lately. They envisioned the AI Pin as a groundbreaking wearable AI computer, but its launch has been plagued by criticism. Issues with performance and overheating, coupled with internal conflicts, have overshadowed the device’s potential.
Employees, both current and former, disclosed that Chaudhri and Bongiorno ignored warnings about the AI Pin’s poor battery life and high power consumption. Rather than addressing these concerns, they favored positivity over constructive criticism, which negatively impacted the product’s development and market performance.
Potential Impact of the Buyout
HP’s potential acquisition of Humane could be a game-changer. By acquiring Humane, HP could enhance its AI and wearable tech capabilities using Humane’s technology and talent. This move might also allow HP to re-engineer and relaunch the AI Pin, addressing the criticisms and challenges it initially faced. For Humane, this acquisition could mean a fresh start, enabling the company to refocus and possibly achieve its original vision for the AI Pin.
