Humane Shuts Down AI Pin, Sells Assets to HP for $116 Million
AI startup Humane announced it will discontinue its AI Pin device and sell parts of its business to HP for $116 million. Existing AI Pins will function until February 28, 2025, after which cloud-dependent features will stop working. The company is offering refunds to recent purchasers, marking a significant setback for standalone AI hardware devices.
At AI Business Magazine, we’ve tracked the rise and increasing scrutiny of agentic AI platforms, which promise autonomous functionality across devices. Humane’s failure underscores the difficulty of translating these cutting-edge capabilities into viable consumer products, especially in a market still dominated by smartphones with integrated AI assistants.
This development highlights the challenges facing AI hardware startups as they compete with established smartphone ecosystems. The failure of the AI Pin raises questions about consumer demand for dedicated AI devices versus AI software integrated into existing platforms.
The AI Pin launched with high expectations but struggled with battery life, response delays, and limited functionality compared to smartphone apps. Critics noted the device’s $700 price point and $24 monthly subscription fee created barriers to adoption. Humane raised over $230 million in funding but failed to achieve commercial success, with sales reportedly falling short of projections. The HP acquisition will focus on Humane’s software patents and AI expertise rather than hardware production.
Industry analysts suggest the failure reflects broader challenges in creating new device categories when existing smartphones already serve most user needs. Other AI hardware companies are watching closely, with some pivoting toward software-only solutions or partnerships with established device manufacturers. The discontinuation leaves early adopters without long-term support, highlighting risks in emerging technology markets. Humane’s founders indicated they will continue working on AI projects within HP’s research division, focusing on enterprise applications rather than consumer devices.
