Inside HP’s acquisition of Humane AI: Who are the winners and who are the losers?
Humane, one of Silicon Valley’s most hyped AI hardware startups, announced on Tuesday that it was being partially acquired by HP for $116 million. That’s less than half of the $240 million the company raised in venture capital. While the deal secures a future for some of Humane’s technology and talent, it leaves behind disappointed investors, laid-off employees, and frustrated customers.
The end of the AI pin
Humane’s flagship product, the AI Pin, is now officially discontinued. Sales have stopped immediately, and after February 28, the device will no longer connect to Humane’s servers—rendering it virtually useless. That means no AI queries, no cloud access, no calls, and no messaging. Customers who purchased an Ai Pin in the last 90 days can request a refund, but early adopters are left out in the cold.
The AI Pin was supposed to be the future of AI-powered wearable computing. Instead, it struggled with critical reviews, disappointing sales, and even a product safety issue involving its charging case. At one point, returns of the Ai Pin reportedly outpaced sales, forcing the company to slash the price from $699 to $499.
Winners: HP, Humane co-founders, and select employees
Sources revealed that HP extended lucrative job offers to select Humane software engineers, many of whom received pay raises between 30% and 70%, plus stock options and bonuses. These engineers will now work under HP IQ, a newly formed innovation lab focused on integrating AI into HP’s product lines, including personal computers, printers, and conference room technology.
Humane’s co-founders, CEO Bethany Bongiorno and Imran Chaudhri, will also join HP IQ, bringing with them the startup’s AI operating system, CosmOS.
For HP, this acquisition represents a significant opportunity to secure AI engineering talent in an ultra-competitive market. While Humane’s team wasn’t developing foundational AI models like OpenAI or Google, they specialized in AI-powered consumer experiences—a highly valuable skill set.
Losers: Humane investors, laid-off employees, and customers
Despite the deal, many Humane employees weren’t so lucky. Those who worked on AI Pin hardware, including in quality assurance, automation, and operations, were laid off almost immediately after the acquisition announcement. Many of them learned their fate through a late-night email, losing access to company systems without warning.
Investors in Humane also took a major hit. The company had once sought a $1 billion exit but ended up selling for a fraction of that. Given that the startup raised $240 million in venture funding, many backers will see little to no return on their investment.
Meanwhile, customers—especially early adopters—were left with expensive, soon-to-be-useless hardware. The sudden shutdown of Humane’s servers will effectively brick the AI Pin, turning a $499 device into an expensive paperweight.
What’s next?
The acquisition wasn’t entirely unexpected. Reports surfaced in June that Humane had been looking for a buyer, and internal communications hinted at major news coming in early 2024. Still, the sudden nature of the deal caught many off guard, with employees learning about it only hours before the public announcement.
HP’s bet on AI hardware is clear. The company sees Humane’s technology and engineers as a valuable addition to its AI strategy. But whether this acquisition ultimately leads to groundbreaking new products—or just another failed AI experiment—remains to be seen.
