The AI Pin was the first product from Humane, a company founded by former Apple employees. Its goal was to make the smartphone concept obsolete. The device is entirely focused on AI functions and includes features such as a camera, a laser projection system for reading text, and a Qualcomm processor.
It became clear from the outset that the AI Pin was unlikely to succeed. Following its commercial failure, HP recently dealt the final blow by acquiring a significant portion of Humane. After the acquisition, HP’s first decision was to cease selling and supporting the AI device, which has only been on the market for a few months.
The acquisition. Humane sold most of its business to HP for $116 million. The deal includes the transfer of intellectual property rights to more than 300 of Humane’s patents, including its CosmOS AI platform (the AI Pin’s operating system).
What HP aims to achieve. In a press release on Tuesday, Tuan Tran, president of HP’s technology and innovation division, said, “This investment will rapidly accelerate our ability to develop a new generation of devices that seamlessly orchestrate AI requests both locally and in the cloud.”
In other words, HP aims to accelerate the integration of AI into its products. This strategy aligns with the emergence of AI-enabled PCs as a key selling point. HP SVP Ketan Patel has previously indicated that the company views AI as a vital component for the future of personal computing.
Immediate effect. Humane bids farewell to its AI Pin after announcing its discontinuation. The company said that effective Feb. 28, devices will no longer connect to its servers.
Humane has justified this decision by citing changing “business priorities”:
“We are writing to inform you that, effective immediately, we are winding down the consumer AI Pin as our business priorities have shifted.”
The company confirmed that the device will be removed from sale immediately. The AI Pin service will no longer be available after Feb. 28. Users won’t be able to access images, videos, and notes stored on the device, and all existing data will be permanently deleted.
The AI Pin will effectively become nothing more than a $700 paperweight, only capable of accessing offline functions such as checking the battery level.
The first major fiasco in the AI era. There’s a potential issue with products that are entirely AI-based. If the manufacturer decides to abandon the product months later, you could be left with a non-functional device that serves no purpose. The case of Humane illustrates this problem. A shift in business priorities led to this situation. However, countless reasons could lead to similar outcomes in the future, including business failures, company acquisitions, technical problems, regulatory issues, bankruptcy, and more.
The case of Humane represents a serious blow to the AI products sector, raising further doubts about the wisdom of purchasing devices that rely entirely on server support.
Image | Humane
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