HP Acquires Humane’s AI Technology
Overview of the Acquisition
HP has made a significant move in the realm of artificial intelligence by acquiring the operating system and intellectual property from Humane, a once-promising tech startup focused on AI wearables. The purchase, valued at $116 million, marks a downturn for Humane, which had previously been valued at around $850 million. This acquisition includes Humane’s CosmOS operating system and technology for its AI Pin—a wearable device designed to be a personal assistant.
Details of the Acquisition
- Financial Overview: While $116 million seems like a hefty price, it pales in comparison to Humane’s earlier valuation and desired sale price, which was close to $1 billion.
- What HP Acquired: The deal includes approximately 300 patents and applications, as well as talented engineers from Humane.
- Future Development Plans: Tuan Tran, who is taking the lead on HP’s AI strategy, expressed that this acquisition will speed up the development of new devices capable of sophisticated AI interactions, both locally on the device and through cloud services.
HP’s Vision for the Future
HP’s ambition is clear: they aim to integrate Humane’s CosmOS into a variety of their products, extending beyond computers to include smart printers and even conference room technologies. The idea is to create a seamless blend of AI capabilities across their entire product line.
- AI in Everyday Devices: Imagine your office printer connected to an AI assistant. This could help simplify tasks that are often frustrating, giving users a more interactive experience.
- Competing in the AI Market: HP aims to carve out its share of the burgeoning AI market, directly competing with tech giants like Google, Apple, and Microsoft.
Challenges Faced by Humane
Humane launched its AI Pin in April of the previous year, but the device fell short of expectations. Initial reviews highlighted significant shortcomings:
- Performance Issues: Users found the AI Pin slow to respond and not as effective as intended, failing to live up to its promise as a personal assistant.
- Sales Struggles: After its launch, the company struggled to sell enough units to meet expectations, leading to the difficult decision to recall its charging case due to fire hazard concerns.
Impact on AI Pin Owners
With the recent acquisition, Humane announced the discontinuation of the AI Pin. Customers have been informed that their devices will cease functioning by February 28.
- Support for Current Users: A recent message from Humane advised users to download any important files before the cutoff date. The device will retain limited functionality, specifically the battery level feature, until it stops working.
- Refund and Replacement Options: Current owners can request refunds until February 27. Those seeking replacement battery packs will receive a refund instead of a new pack.
Future Directions for Former Humane Leaders
The founders of Humane, who both have backgrounds at Apple, will not go unused in HP’s future. They are expected to lead a new division focused on integrating AI features into existing HP devices rather than creating new wearable tech.
- Where AI Wearables Stand: So far, mainstream AI wearables haven’t proven to be significantly more capable than smartphones, and it remains to be seen if new players entering the market can change that perception.
- Upcoming Products: Companies like Meta and various smaller brands are expected to release their own AI wearables this year, but consumer caution may linger following Humane’s missteps.
Conclusion
Overall, HP’s acquisition of Humane’s technology reflects their ambition to dominate the AI landscape. However, the journey of Humane serves as a cautionary tale of ambition meeting reality in the competitive world of technology. As HP moves forward, only time will tell if they can effectively integrate the acquired technology and fulfill the promise of advanced AI in everyday devices. Meanwhile, the fallout for existing AI Pin users underscores the risks involved in investing in new technology that may not deliver as promised.
