Humane AI Wearable Startup Eyes Sale Valued at Up to $1 Billion
Artificial intelligence startup Humane Inc. is reportedly exploring a potential sale of its business, seeking a price between $750 million and $1 billion, accroding to Bloomberg. This news comes just weeks after the public launch of its wearable AI device, which received mixed reviews.
A Rocky Launch for Humane's AI Pin
Humane Inc., founded by ex-Apple veterans Imran Chaudhri and Bethany Bongiorno in 2018, aimed to revolutionize wearable technology with its AI-powered device, the AI Pin. The company has raised $230 million from high-profile investors, including OpenAI CEO Sam Altman. Last year, it was valued at $850 million.
The AI Pin, a magnetic, square-shaped wearable device, attracted significant buzz before its launch. However, post-launch reviews have been largely critical, citing issues with reliability, practicality, and overall performance. Notably, Marques Brownlee, a leading tech reviewer with over 18 million subscribers, labeled it the "worst product I've ever reviewed."
According to Bloomberg, Humane is working with a financial adviser to assist in the sale process. The company is seeking a valuation between $750 million and $1 billion, although the process is still in its early stages and may not result in a deal.
What Went Wrong with the AI Pin?
The AI Pin’s primary issues include:
- Functionality: The device is slow, makes frequent errors, and isn’t intuitive to use.
- User Interface: Its gesture-based control and laser projection display are not user-friendly, especially in bright environments.
- Reliability: Poor battery life and overheating issues necessitate frequent charging and cause discomfort.
- Compatibility: Lack of integration with smartphones and popular apps limits its practical utility.
- Cost: At $699 plus a $24 monthly subscription, the device’s value proposition is questionable given its limitations.
Reviewers have highlighted that while the concept is innovative, the execution falls short. The AI Pin's performance issues and limited utility have overshadowed its potential to reduce screen time and offer a new kind of wearable technology.
Future Prospects
Humane’s exploration of a sale comes at a time when other companies are ramping up their AI hardware efforts. Competitors like Meta Platforms Inc. with its AI-powered Ray-Bans and the handheld Rabbit device are also competing for market share.
For Humane to turn things around, significant improvements are needed:
- Connectivity: Enhancing Wi-Fi and LTE connectivity and possibly adopting standards like Matter for better integration with smart home ecosystems.
- User Experience: Improving the user interface and making the device more intuitive and reliable.
- Cloud Services: Ensuring robust and responsive AI capabilities through better provisioning of cloud resources.
While Humane faces stiff competition from tech giants with more resources and established ecosystems, the company’s focus on innovation could still position it for a comeback if it can address the current shortcomings of the AI Pin.
The potential sale of Humane Inc. underscores the challenges of bringing a revolutionary product to market. The AI Pin's rocky launch highlights the gap between innovative ideas and practical execution. As Humane navigates this critical juncture, its future will depend on its ability to refine its technology and meet consumer expectations.
