Humane, the ambitious AI hardware startup, announced on Tuesday that it is discontinuing its flagship AI Pin device and selling major parts of its business to HP for $116 million. The transaction, expected to close by the end of February 2025, includes HP’s acquisition of Humane’s employees, software portfolio, patents, and patent applications.
The AI Pin will cease functioning on February 28, 2025 at 12 p.m. PST, when devices will stop connecting to Humane’s servers. The company has halted all device sales effective immediately, marking an abrupt end to a product that launched with significant fanfare in November 2023.
Refund Policy Creates Controversy: Humane announced it will only offer refunds to customers whose devices shipped on or after November 15, 2024. All refund requests must be submitted by February 27, leaving early adopters who purchased the device during its initial launch period without recourse. This limited refund window has raised concerns among the broader customer base who invested in the $699 device (later reduced to $499 in October).
From Apple to Humane to HP: The acquisition will see Humane’s co-founders, Bethany Bongiorno and Imran Chaudhri, both former longtime Apple employees who left in 2019 to start Humane, join HP’s newly formed AI innovation lab called HP IQ. This new division will focus on “building an intelligent ecosystem across HP’s products and services for the future of work,” according to HP’s statement.
The AI Pin’s Troubled Journey: Launched as an AI personal assistant, the AI Pin allowed users to take calls, answer texts through voice commands, and interact via a laser-projected display. Despite being named to Time magazine’s list of best inventions in October 2023, the device was met with harsh criticism over its design and features. The negative reception forced Humane to slash prices from $699 to $499 in October 2024.
When confronted with criticism in April, the co-founders remained optimistic, calling it only the “beginning of the story” and promising software refinements, new features, partnerships, and an SDK. However, less than a year later, those ambitious plans have been abandoned as the company exits the hardware business entirely.
Key Quotes
Your AI Pin will continue to function normally until 12 p.m. PST on February 28, 2025
Humane announced in a website update that customers have less than a month before their devices become non-functional, creating urgency for users to transition away from the platform and submit refund requests if eligible.
We have an ambitious road map with software refinements, new features, additional partnerships, and our SDK. All of this will enable your AI Pin to become smarter and more powerful over time.
Co-founders Bethany Bongiorno and Imran Chaudhri made this statement to Business Insider in April 2024 when defending the AI Pin against criticism. The optimistic vision contrasts sharply with the device’s discontinuation less than a year later.
focused on building an intelligent ecosystem across HP’s products and services for the future of work
HP described the mission of its new HP IQ division in Tuesday’s statement, indicating the company’s strategy to integrate Humane’s AI expertise into existing HP products rather than pursuing standalone AI devices.
Our Take
Humane’s downfall illustrates a critical lesson: AI innovation must solve real problems within existing user behaviors, not force entirely new interaction paradigms. The AI Pin asked consumers to abandon their smartphones for a laser-projected interface—a bridge too far for most users. The limited refund policy is particularly troubling, as it punishes the early adopters who took the biggest risk on Humane’s vision. This could have lasting implications for AI hardware startups seeking early customers. HP’s acquisition appears strategic, gaining talented engineers and patents without the burden of supporting failed hardware. The real winners here are HP, who acquired valuable AI talent and IP at a discount, while Humane’s customers and investors bear the losses. This consolidation trend—startups being absorbed by established players—may accelerate as the AI hardware market matures and separates viable products from ambitious failures.
Why This Matters
Humane’s collapse represents a cautionary tale for the AI hardware industry and highlights the significant challenges of creating standalone AI devices in an era dominated by smartphone ecosystems. The failure of the AI Pin, despite $116 million in backing and founders with prestigious Apple pedigrees, demonstrates that innovative AI technology alone isn’t sufficient for market success.
This acquisition signals HP’s strategic push into AI integration across its existing product lines rather than standalone devices. The creation of HP IQ suggests traditional tech companies are taking a more conservative approach—embedding AI into established hardware ecosystems rather than betting on revolutionary new form factors.
The limited refund policy also raises important questions about consumer protection in the AI hardware space. Early adopters who supported Humane’s vision are now left with expensive devices that will become non-functional bricks, potentially dampening enthusiasm for future AI hardware startups. This could make consumers more hesitant to invest in emerging AI products, requiring startups to offer stronger guarantees or risk losing market confidence in an already challenging environment.
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Source: https://www.businessinsider.com/humane-shutting-down-some-buyers-not-get-refund-ai-pins-2025-2