Headline: Humane’s Futuristic Ai Pin Faces Disappointing Reviews and Potential Sale
Introduction:
Days before gadget reviewers weighed in on the Humane Ai Pin, a futuristic wearable device powered by artificial intelligence, the founders of the company gathered their employees and encouraged them to brace themselves. The founders, Bethany Bongiorno and Imran Chaudhri, were right in their warning. The product received brutal reviews, with some calling it "totally broken" and "the worst product I’ve ever reviewed." These negative reviews came after Humane marketed the Ai Pin for a year and had raised significant funding from Silicon Valley investors. Now, the company is exploring a potential sale to HP or other buyers, while also managing a new funding round.
The Face-Plant by Humane:
Humane had positioned itself as a top contender among AI hardware makers, raising $240 million from prominent Silicon Valley investors and valuing the start-up at $1 billion. However, the Ai Pin failed to meet expectations. In April, reviewers panned the product, citing glaring flaws and broken functionality. Humane’s setbacks are part of a pattern seen among companies in the field of generative AI, with unpolished products being released and disappointing consumers.
Humane’s Setbacks and Departures:
Humane had hoped to sell 100,000 units of the Ai Pin this year, but as of early April, they had received only around 10,000 orders. The company also faced employee departures and had to change its return policy due to canceled orders. Furthermore, a fire risk associated with the device’s battery led them to ask customers to stop using the Ai Pin charging case. These setbacks, coupled with the negative reviews, have caused Humane to consider a potential sale.
Positive Ambition, Unpolished Product:
Humane founders, Ms. Bongiorno and Mr. Chaudhri, declined to comment on a possible sale or fundraising for the company. They emphasized the difference between testing a device and actually using it, acknowledging that there were things they wished they could have resolved differently. Despite the setbacks, Humane claims to have worked on improvements and updates to address the issues highlighted by reviewers. They have integrated OpenAI’s newer chatbot system, added voice navigation options, and improved the device’s battery life and response time.
Seeking a Potential Sale:
After the negative reviews, Humane started discussions with HP regarding a potential sale for more than $1 billion. Other potential buyers have emerged, although no formal sales process has begun. Humane retained an investment bank to navigate these discussions while also managing a new funding round that would value the company at $1.1 billion. Wireless carrier deals have also been signed to expand the Ai Pin’s reach to South Korea and Japan.
The Road to Launch:
Humane was founded in 2019 by Ms. Bongiorno and Mr. Chaudhri, both of whom had previously worked at Apple. They set out to create a lapel pin with AI-powered features, such as a virtual assistant, a laser for text projection, a camera, and more. However, from the beginning, the Ai Pin had issues. The laser display consumed significant power and caused overheating, and the device’s battery was not sufficient to last long. The release date of the device was pushed back to April from October, and employees voiced concerns about launching an unready product.
Conclusion:
Despite the challenges, Ms. Bongiorno and Mr. Chaudhri remain determined to succeed and have made improvements to address the reviewers’ concerns. They believe the negative feedback has been a gift that helped them identify areas of improvement. Humane has received interest from various businesses and has plans to expand the device’s reach through partnerships and licensing agreements. However, the company is exploring a potential sale or fundraising to ensure the successful development and launch of future iterations of the Ai Pin.
Questions and Answers:
What were some of the negative reviews of the Humane Ai Pin?
- Reviewers described the Ai Pin as "totally broken" and "the worst product I’ve ever reviewed" due to its glaring flaws and broken functionality.
How did Humane respond to the negative feedback?
- Humane pulled their team together and acknowledged the need to lean into painful feedback to address the device’s issues.
Why is Humane considering a potential sale?
- After disappointing reviews and slower than expected orders, Humane has started discussions with HP and other potential buyers about a potential sale to ensure the future growth and success of the company.
What improvements has Humane made to the Ai Pin since the negative reviews?
- Humane has integrated OpenAI’s newer chatbot system, added voice navigation options, sound effects, and improved the device’s battery life and response time.
- How has Humane responded to the interest from businesses and potential partners?
- Within 48 hours of the device’s launch, more than 1,000 companies reached out to discuss potential partnerships or building software for the Ai Pin. Humane has also signed wireless carrier deals to expand its reach to South Korea and Japan.
