HP Considers Buying Humane AI Pin Business Amid Struggles
Humane, an AI startup founded by ex-Apple executives Imran Chaudhri and Bethany Bongiorno, is reportedly in talks with HP for a potential acquisition of its AI Pin business. Despite high expectations, Humane has struggled to meet sales targets and has faced significant criticism regarding its product's performance and safety.
Key Points:
- Sales and Performance Issues:
- Humane aimed to sell 100,000 AI Pins in the first year but had received only about 10,000 orders by early April.
- Priced at $699, the AI Pin features a laser projection system for AI-powered functionalities.
- Reviews highlighted issues like poor battery life, limited functionality, and overheating.
- Safety Concerns:
- Humane warned customers about potential fire risks with the AI Pin's charging case.
- The company advised users to stop using the charging case immediately.
- Humane is seeking a new supplier after disqualifying the original vendor due to battery cell issues.
- Internal and External Criticisms:
- Humane's internal culture has been criticized for prioritizing "positivity over criticism," leading to the dismissal of a senior software engineer who raised concerns about the product's readiness.
- The company's handling of technical limitations and safety issues has been questioned by both employees and customers.
- Potential Acquisition:
- Humane is reportedly seeking a buyer for between $750 million and $1 billion.
- HP has emerged as a potential buyer, evoking memories of its acquisition and subsequent discontinuation of Palm.
- The future of Humane’s technology and employees remains uncertain if the deal goes through.
Detailed Breakdown
Humane's AI Pin:
Device Overview:
The AI Pin is a wearable device designed to offer various AI-powered features via a laser projection system. Priced at $699, it was intended to revolutionize wearable AI technology but fell short of expectations.
Launch Challenges:
Following its launch, the AI Pin was widely panned by critics for failing to deliver on its promises. Issues reported included poor battery life, limited functionality, and overheating. Customers were also alerted to potential fire risks associated with the device's charging case.
Safety Concerns and Company Response:
Humane sent an email to customers advising them to stop using the AI Pin’s charging case due to fire safety risks. The company disqualified its original battery cell supplier and is in search of a new vendor. Humane reassured users that the AI Pin itself, the magnetic Battery Booster, and the charging pad are not affected. As compensation, Humane is offering two free months of its subscription service, essential for most of the device's functionalities.
Company Culture and Internal Issues:
Reports indicate a problematic internal culture at Humane, where concerns about the AI Pin's technical limitations were allegedly ignored. A senior software engineer was fired in February for questioning the AI Pin's readiness, highlighting issues with the company’s approach to employee feedback and product development.
Future Prospects:
Despite its struggles, Humane is seeking a buyer, with HP showing interest in a potential deal exceeding $1 billion. The acquisition’s outcome could significantly impact the future of Humane's technology and its employees. The deal raises questions about whether HP will integrate Humane’s technology or discontinue it, reminiscent of HP’s previous acquisition of Palm.
Customer Advisory:
Safety Advisory:
Humane has advised customers to immediately stop using the AI Pin’s charging case. The company is working on finding a new supplier for the charging cases. Users are compensated with two free months of the subscription service.
Potential Acquisition:
Discussions with HP for a potential acquisition are ongoing, but the outcome remains uncertain.
Summary:
Humane’s journey with the AI Pin has been turbulent, marked by performance issues, safety concerns, and internal criticism. With HP potentially stepping in as a buyer, the future of Humane’s innovative technology hangs in the balance. The outcome of these negotiations will determine whether the AI Pin will get a second chance to fulfill its initial promise or become another cautionary tale in the tech industry.
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