Silicon Valley hardware startup Humane, once a darling of the AI sector, has been partially acquired by HP for $116 million. The deal, announced Tuesday, represents a significant valuation drop, falling well short of the $240 million the company previously secured in venture capital funding.
The acquisition triggered an immediate and chaotic transition for Humane’s roughly 200-person workforce. While the deal offers a lifeline for some, it has left many others unemployed with little notice.
Hiring Frenzy and Abrupt Layoffs
In the hours following the announcement, a select group of Humane employees—primarily those focused on core software development—received job offers from HP. These packages reportedly include salary increases of 30% to 70%, supplemented by HP stock options and performance bonuses.
The situation was starkly different for other staff members. Employees working on the Ai Pin hardware, including operations, quality assurance, and automation teams, were notified of their termination on Tuesday night. Sources indicate that access to internal company systems was revoked immediately following these notifications.
HP’s aggressive recruitment strategy reflects a broader trend in Silicon Valley: the high demand for engineers capable of integrating AI systems into existing products. By bringing these developers into the newly formed “HP IQ” innovation lab, HP aims to inject AI capabilities directly into its printers, PCs, and conference room technology.
The End of the Ai Pin
The transition was marked by rushed communication. Employees were invited to an impromptu, company-wide meeting with only a few hours’ notice on Tuesday. During this session, CEO Bethany Bongiorno confirmed the acquisition just moments before the public press release went live.
The collapse of Humane follows a series of setbacks for the startup. After receiving scathing reviews for the Ai Pin, the company faced product recalls over fire hazards and a mass exodus of executive talent. Ultimately, return rates for the device reportedly outpaced sales, forcing a price cut from $699 to $499.
With the acquisition complete, the future of the Ai Pin is effectively over. Humane has advised current owners to recycle their devices, noting that the hardware will cease to function in less than two weeks.
A Shifting AI Landscape
While Humane’s specific hardware mission failed to gain traction, the broader market for AI wearables remains active. Meta’s Ray-Ban smart glasses continue to see strong sales, and the Rabbit R1 has pushed into mainstream retail channels.
Despite the turmoil of the acquisition, some industry observers suggest that for a startup in such a volatile sector, reaching an exit—even at a reduced price—remains a notable, if imperfect, milestone.