Humane, once a standout AI hardware startup in Silicon Valley, revealed that HP is partially acquiring it for $116 million. This is significantly lower than the $240 million Humane had raised in venture funding.
The announcement created a stir among Humane’s roughly 200 employees, as internal documents show. The day was marked by mixed emotions and uncertainty.
Shortly after the news broke, some employees received enticing job offers from HP, featuring pay boosts between 30% and 70%, alongside stock options and bonuses. Most of those offered jobs had worked on the core software, though not everyone in that area was included.
However, many employees, particularly those working on AI Pin devices, were laid off that same evening. This divide hints at HP’s strategy to attract Humane’s skilled AI software engineers, who are highly sought after in Silicon Valley.
In a significant move, HP will establish an innovation lab, HP IQ, where Humane’s cofounders and the AI operating system, CosmOS, will continue to develop AI technology for HP products.
For some, the higher salaries from HP were a bright spot amid the turmoil.
Impromptu Company Meetings
Humane’s staff had some inkling of what was coming. A previous report noted that Humane aimed to sell to HP for over $1 billion, but the final price turned out to be much lower.
Before the announcement, leadership hinted at significant news arriving in late January, but it wasn’t until mid-February that employees were informed of the deal.
On Tuesday, just before the press release went out, the chief of staff invited employees to an unexpected meeting. During the meeting at the San Francisco office, employees were informed about the acquisition.
In a later meeting, CEO Bethany Bongiorno specified that some employees would receive offers from HP while others wouldn’t. Many employees were laid off via email that same day, with access to company systems cut off immediately.
The exact number of layoffs remains unclear, as neither HP nor Humane has commented.
A Struggling AI Hardware Startup
Humane’s journey has not been smooth. The AI Pin, its flagship product, received poor reviews from early users, which hurt employee morale. At one point, its charging case was even flagged as a fire hazard.
The situation worsened when the Head of Product Engineering left for a new venture in July. Sales troubles escalated as returns exceeded sales, forcing a price drop from $699 to $499.
After the acquisition, Humane advised customers to “recycle” their AI Pins, claiming they would mostly stop working soon.
Yet, some see Humane as a moderate success. Many startups don’t make it this far, and some staff are landing decent jobs at HP that allow them to continue their work.
Interestingly, the AI Pin aimed to replace smartphones just as interest in AI wearables grows. Meta’s Ray-Ban AI glasses are selling well, and Rabbit’s R1 is now at Best Buy, making waves in the market. Apple also released a new $599 iPhone with AI features, showcasing the competition.
The AI Pin might have been ahead of its time, leaving us to wonder how early it really was.
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Ai Pin,HP,Humane
