HP has announced its partial acquisition of the once-promising AI hardware startup Humane for $116 million, a figure considerably less than the $240 million the company previously raised from venture capital investments. This acquisition reflects not only changes within the startup but raises significant questions about the future job security for Humane’s approximately 200 employees.
Immediately following the acquisition announcement on Tuesday, HP reached out to several Humane employees, offering them new positions with pay raises between 30% and 70%, alongside enticing stock options and bonuses. Notably, many of those receiving offers had worked on Humane's core software systems, which had positioned the startup as a notable player within the AI domain. "Humane's engineers who can build around AI systems are valuable assets, even for established giants like HP," noted sources who spoke under condition of anonymity.
While some employees found the transition to HP appealing, especially amid the promise of improved salaries, others faced grim news. Reports indicated layoffs were equally swift, with employees involved closely with the AI Pin devices notified of their job losses just hours after the acquisition was revealed. According to TechCrunch, those who received job offers were largely focused on software engineering roles, reflecting HP’s strategic interest in bolstering its AI capabilities.
Humane's AI Pin, which aimed to revolutionize the wearable technology space, has struggled through its product life, facing negative feedback from early testers and subsequent product malfunctions, including issues with its charging case. These hurdles culminated with returns surging past the sales figures, prompting the startup to cut the price of its AI Pin from $699 to $499 just before the acquisition news broke. Following the announcement, Humane has since informed customers to "recycle" their $499 AI Pins, which it claims will cease functioning within weeks.
The events of Tuesday were preempted by internal communications hinting at significant news to come. According to sources within Humane, employees were advised to gear up for announcements relating to potential changes back as early as January, but the acquisition outcome itself did not surface until February.
HP’s new division, HP IQ, will not only house the AI operating system CosmOS developed by Humane but also welcome its founders, Imran Chaudhri and CEO Bethany Bongiorno, as part of its operations. This new initiative will concentrate on integrating advanced AI functionality across HP's product lines, including personal computers and printers.
The response to HP’s acquisition has been mixed on social media, with some poking fun at the notion of former startup employees moving to work on AI-enabled printers. Yet, for many employees, the offers from HP signify stability and the opportunity to continue working on AI initiatives, even if the setting has changed dramatically from the vibrant startup ecosystem.
Humane’s saga stands out amid the broader shifts happening within the tech industry, particularly with AI technology. While some voice concerns over its previous projections of selling itself for over $1 billion—reported earlier this year by The New York Times—the eventual acquisition price highlights considerable market shifts and the challenges startups face when competing against larger, well-established corporates.
Despite its challenges, some employees and observers remain hopeful about Humane’s impact as they transition under HP's auspices. Startups frequently come with high risks and uncertain futures, but the potential for growth and innovation remains enticing. For example, as other tech companies, including Meta and Apple, launch successful AI-integrated products, the enduring viability of AI technology continues to command attention.
Looking forward, the competitive technology scene appears vibrant, with new players entering the space. AI wearables, for example, have seen fresh traction, with Meta's Ray-Ban smart glasses enjoying success and other startups like Rabbit and Friend vying for the spotlight. With the AI Pin struggling for traction, it is worth noting whether Humane’s technology will find new life under HP’s vision.
HP and Humane declined to comment when contacted by TechCrunch, leaving the particulars of this acquisition—and its future ramifications—largely shrouded at this time. Nevertheless, the ability of Humane's employees to adapt to changing corporate landscapes may well reflect the resilience required to thrive within this rapidly changing tech environment.