Humane, the startup behind the AI Pin wearable computer, is reportedly on the hunt for a potential buyer for its business. According to a report from Bloomberg, the company, led by former longtime Apple employees Imran Chaudhri and Bethany Bongiorno, is seeking a price tag of between $750 million and $1 billion. However, this might prove to be a tough sell following the poorly-reviewed debut of the $699 AI Pin.
The Underwhelming Product
The AI Pin was marketed as an innovative solution to reduce dependence on smartphones and provide users with an always-on, wearable AI assistant. However, the device has received widespread criticism for its slow responses, underwhelming user experience, and lackluster performance. Despite featuring some novel ideas, the AI Pin’s software is deemed underbaked and inconsistent, with hardware issues such as poor battery life and overheating.
Humane developed its own operating system, CosmOS, to power the AI Pin. The device is designed to fetch answers for voice queries and analyze its environment using a camera. Additionally, it projects a laser “display” onto the wearer’s inner palm for certain interactions. A monthly subscription is required to keep the device active, further adding to the overall cost for users.
Despite raising $230 million from investors, including OpenAI CEO Sam Altman, Humane’s valuation took a hit after the AI Pin’s poor reception. Valued at $850 million in 2023, the company’s future now seems uncertain as it struggles to attract potential buyers at the desired price point.
The Future of Humane
In an attempt to salvage its reputation, Humane has promised to address software bugs with firmware updates and has introduced OpenAI’s GPT-4o model to enhance the device’s capabilities. However, the list of potential buyers for Humane remains limited, as tech giants like Amazon, Apple, Google, Meta, and Microsoft are already heavily invested in AI research and development.
While Humane’s intellectual property may hold some value, it remains unclear how much it would contribute to the efforts of larger tech companies in the AI space. With the market becoming increasingly saturated with language models and generative AI technology, Humane’s future prospects look uncertain as it struggles to find a buyer willing to meet its asking price.
Humane’s journey from a promising startup to a struggling company facing criticism and financial challenges serves as a cautionary tale for tech innovators. The story of the AI Pin underscores the importance of delivering on promises, investing in robust research and development, and understanding the competitive landscape before launching a new product in the market.
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