Humane, Creator of the $700 AI Pin, is Actively Pursuing a Buyer

Humane, the company behind the highly anticipated Ai Pin, which faced criticism following its launch last month, is reportedly seeking a buyer, according to a Bloomberg report citing anonymous sources.

The company has set a price range between $750 million and $1 billion, with the sale process still in its preliminary stages, as noted by the sources. Although Humane has not publicly disclosed its valuation during previous funding rounds, The Information highlighted last year that it was estimated at $850 million. Humane did not respond immediately to requests for comments on this report.

A Needle in a Haystack

Founded in 2017 by former Apple executives Bethany Bongiorno and Imran Chaudhri, Humane secured around $230 million from notable backers, including Microsoft, Qualcomm Ventures, Marc Benioff, and OpenAI’s Sam Altman, even before unveiling any products. The company finally introduced its flagship product, the Ai Pin, in June 2023. This innovative wearable gadget features a projected display and AI-driven capabilities. However, the launch faced delays and the Ai Pin officially became available in mid-April.

With its unique design, the Ai Pin integrates numerous sensors, generative AI, and a compact projector capable of displaying visuals on any surface, including the user's hand.

At a price point of $700, alongside a $24 monthly subscription for a phone number and unlimited data for queries, the Ai Pin has struggled to captivate consumers in a challenging market. Some critics argue that the gadget appears to address a problem that doesn't exist, stating that its functionalities largely mirror those of existing smartphones.

Prominent YouTuber and tech reviewer Marques Brownlee, known as MKBHD, delivered a particularly critical assessment, suggesting it could jeopardize the Ai Pin’s market prospects just as it launched.

In addition, concerns over battery life and overheating, compounded by competition from other emerging and more affordable smart devices like Meta’s Ray-Bans and Rabbit’s R1, raise doubts about Humane's ability to establish a significant presence in the wearable technology sector.

Adding to the challenges, the company’s Chief Technology Officer, Patrick Gates, left in January along with 4% of its workforce after joining Humane in 2019 from Apple. Given these circumstances, the news of Humane seeking a buyer isn't particularly shocking. However, whether potential buyers will show interest remains uncertain.