HP Acquires Humane for $116 Million, Shuts Down AI Pin

Figure 1: Visual representation of the BeyondTrust vulnerability chain

HP Inc. announced on February 18, 2025, that it will acquire the assets of Humane, the startup behind the AI Pin wearable device, for $116 million. The deal includes Humane's CosmOS AI platform, more than 300 patents and patent applications, and the company's technical staff. HP will not acquire the AI Pin hardware device itself.

Humane simultaneously announced that AI Pin devices will cease functioning on February 28, 2025, at 3:00 PM Eastern Time. After that date, the devices will no longer connect to Humane's servers, rendering features including calling, messaging, AI queries, and cloud access inoperable. Users have been instructed to download any stored pictures, videos, and notes before the shutdown deadline.

The acquisition represents a significant markdown from Humane's reported $1 billion valuation when the company began seeking a buyer in May 2024. Humane had raised $230 million in venture capital funding across three rounds from investors including Microsoft, Qualcomm Ventures, Tiger Global, and LG Technology Ventures.

The AI Pin launched in April 2024 to overwhelmingly negative reviews. The Verge's David Pierce stated the device "just doesn't work," while technology reviewer MKBHD called it "the worst product I've ever reviewed." By August 2024, daily returns were reportedly outpacing sales, prompting a price reduction in October 2024.

Humane's technical team, including founders Imran Chaudhri and Bethany Bongiorno, will join HP to form a new division called HP IQ, described as HP's AI innovation lab focused on integrating artificial intelligence across the company's personal computers, printers, and connected conference rooms.

Humane launched the AI Pin in November 2023 at a price of $699, positioning it as a screenless wearable AI assistant that could project information onto surfaces using a laser display. The device required a $24 monthly subscription for connectivity and AI features.

The official product launch occurred in April 2024, following an onstage demonstration at TED that generated significant attention but also raised questions about the device's capabilities. Humane had to update its reveal video to address what the company acknowledged as a "big error."

Reviews published after the April 2024 launch were uniformly critical. Technology publications and reviewers cited the device as clunky, limited in functionality, and unreliable. The negative reception prompted Humane to begin seeking a buyer by May 2024, initially at a valuation of approximately $1 billion, according to SiliconANGLE.

By August 2024, The Verge reported that daily returns of the AI Pin were outpacing new sales. Humane reduced the device's price from $699 to $499 in October 2024 in an attempt to stimulate demand.

On February 18, 2025, HP announced the $116 million acquisition of Humane's assets. The same day, Humane published support documentation detailing the shutdown timeline for AI Pin devices.

Figure 2: How the authentication bypass vulnerability works

HP stated in its press release that the acquisition includes Humane's CosmOS platform, technical talent, and more than 300 patents and patent applications. The company confirmed that Humane engineers will join HP's Technology and Innovation organization.

According to HP, the acquired team will form HP IQ, described as "HP's new AI innovation lab focused on building an intelligent ecosystem across HP's products and services for the future of work."

Humane's support documentation confirms that AI Pin devices will lose server connectivity on February 28, 2025, at 12:00 PM Pacific Standard Time (3:00 PM Eastern Time). The company stated that after the shutdown, "any function that requires cloud connectivity like voice interactions, AI responses, and .Center access" will not work.

Humane confirmed that refunds will only be issued for AI Pins within the 90-day return window from their original shipment date. Refund requests must be submitted by February 27, 2025. Customers who paid for subscriptions extending past February 28 will receive prorated refunds.

Customers awaiting replacement charging cases following a recall will "automatically receive a refund for the portion of your original purchase price that was allocated to the Charge Case after February 28, 2025," according to Humane's FAQ.

HP gains access to Humane's CosmOS AI platform, which the startup had been positioning as an operating system that other companies could integrate into their devices. The platform represents Humane's core AI technology development work.

The acquisition brings more than 300 patents and patent applications to HP's intellectual property portfolio. These patents cover various aspects of wearable AI technology, projection displays, and voice interaction systems.

HP acquires experienced AI engineering talent, including Humane's founders Imran Chaudhri and Bethany Bongiorno. Chaudhri previously worked at Apple, where he contributed to the development of the iPhone's user interface.

The formation of HP IQ provides HP with a dedicated AI innovation lab. According to HP's press release, this team will focus on integrating AI capabilities across HP's product lines, including personal computers, printers, and connected conference room systems.

Figure 3: Privilege escalation from user to SYSTEM level

AI Pin owners face the complete loss of device functionality within ten days of the announcement. The February 28 shutdown deadline provides minimal time for users to retrieve stored data or seek refunds.

Humane's refund policy limits eligibility to devices within the 90-day return window, leaving many early adopters without recourse. Customers who purchased the device at launch in April 2024 fall outside this window.

The $116 million acquisition price represents a significant loss for Humane's investors, who contributed $230 million across three funding rounds. The deal values the company at roughly half of the total capital invested.

The AI Pin's failure raises questions about the viability of screenless wearable AI devices as a product category. The device's poor reception and rapid decline suggest fundamental challenges with the form factor and user experience approach.

HP's acquisition does not include the AI Pin hardware, indicating the company sees no value in continuing or reviving the physical product. Existing inventory and the device's design will not be part of HP's future plans.

The AI Pin was designed as a wearable device that attached to clothing using a magnetic clip. The device featured a camera, microphone, and a laser projection system capable of displaying information onto the user's palm or nearby surfaces.

CosmOS, Humane's AI operating system, processed voice commands and managed interactions with cloud-based AI services. The system handled natural language queries, provided responses through audio output, and controlled the laser projection display.

The device required constant connectivity to Humane's servers for AI processing. Voice interactions were transmitted to cloud infrastructure where AI models processed queries and generated responses. The $24 monthly subscription covered this cloud processing and cellular connectivity.

Technical context (optional): The AI Pin's architecture relied entirely on cloud-based inference, with no significant on-device AI processing capability. The laser projection system used a MEMS (microelectromechanical systems) mirror to create visible images on surfaces, a technology that required specific lighting conditions and surface characteristics to function effectively.

The Humane acquisition represents one of the first high-profile failures in the emerging wearable AI device category. The company's trajectory from $1 billion valuation to $116 million sale within approximately nine months illustrates the risks facing hardware startups in the AI space.

HP's interest in Humane's AI platform rather than its hardware suggests enterprise technology companies see value in AI software and talent acquisition over consumer wearable devices. The formation of HP IQ indicates HP's strategic focus on AI integration across its existing product lines.

The acquisition follows a pattern of established technology companies acquiring AI startups for their talent and intellectual property rather than their products. HP gains AI expertise and patents while avoiding the challenges of consumer hardware development and support.

Humane's investors, including Microsoft and Qualcomm Ventures, face significant losses on their investments. The outcome may influence future venture capital decisions regarding AI hardware startups, particularly those pursuing novel form factors without established market demand.

HP has not disclosed specific plans for how CosmOS technology will be integrated into its products. The company's press release describes HP IQ's mission in general terms without detailing concrete product roadmaps or timelines.

The fate of Humane's remaining inventory and manufacturing relationships has not been addressed. HP's decision not to acquire the AI Pin hardware leaves questions about how existing stock will be handled.

Humane has not disclosed the total number of AI Pin units sold or the number of active users affected by the shutdown. The company's statement that daily returns exceeded sales by August 2024 suggests limited adoption, but specific figures remain unpublished.

The terms of the acquisition regarding Humane's outstanding liabilities, including potential warranty claims and subscription refunds, have not been detailed publicly.

HP IQ's first product announcements will indicate how the company plans to deploy Humane's AI technology. Observers should monitor HP's PC and printer product lines for AI feature integrations in upcoming releases.

The February 28, 2025, shutdown deadline will reveal the scale of affected users based on any public response or complaints. Consumer protection agencies may receive complaints regarding the limited refund window.

Other wearable AI device makers, including companies developing AI-powered glasses and earbuds, may adjust their strategies based on Humane's outcome. Product announcements and funding rounds in this category will indicate investor sentiment.

HP's quarterly earnings calls following the acquisition will provide insight into how the company accounts for the acquisition and its expectations for the HP IQ division's contributions.

1. The Verge - "Humane is shutting down the AI Pin and selling its remnants to HP" - February 18, 2025 - https://www.theverge.com/news/614883/humane-ai-hp-acquisition-pin-shutdown

2. TechCrunch - "Humane's AI Pin is dead, as HP buys startup's assets for $116M" - February 18, 2025 - https://techcrunch.com/2025/02/18/humanes-ai-pin-is-dead-as-hp-buys-startups-assets-for-116m/

3. SiliconANGLE - "HP to acquire assets from 'Ai Pin' maker Humane in $116M deal" - February 18, 2025 - https://siliconangle.com/2025/02/18/hp-acquire-assets-ai-pin-maker-humane-116m-deal/