The Humane AI Pin, launched in April at a price of $699, has faced significant backlash and an overwhelming number of returns. Despite initial excitement, the wearable AI device has struggled to gain a foothold in the market.
Critical Reception and Sales Woes
The Verge uncovered internal sales data showing that from May to August, returns of the Humane AI Pin outnumbered sales. The product’s failure can be attributed to harsh reviews from prominent tech critics. Marques Brownlee, a well-known YouTuber, called it “the worst product” he has ever reviewed. Similarly, Cherlynn Low of Engadget criticized the AI Pin as “slow, finicky, and barely smart,” noting that using it made her feel “pretty dumb.”
Adding to its woes, the AI Pin’s charging case was recalled due to a risk of bursting into flames, further damaging the product’s reputation.
In late May, rumors surfaced that Humane was looking to sell the company, with a valuation between $750 million and $1 billion. Jason England, Managing Editor of Computing at Tom’s Guide, suggested that startups like Humane aim to be acquired by larger companies. Despite switching their AI models to OpenAI’s GPT-4o, this move appeared to be too little, too late.
There were reports that HP was interested in acquiring Humane, but no deal materialized. The Information reported that the company is negotiating with investors to convert its debt into equity.
Humane’s sales data reveals that the company sold over $9 million worth of AI Pins and accessories. However, more than 1,000 orders were canceled before shipping, and over $1 million worth of products were returned. Although approximately 10,000 units were shipped, this is far below the company’s goal of 100,000.
One significant challenge Humane faces is that returned AI Pins cannot be refurbished or reassigned due to a limitation imposed by T-Mobile, which declined to comment. A spokesperson for Humane acknowledged inaccuracies in the reported financial data but did not provide further details.
Co-founders Imran Chaudhri and Bethany Bongiorno have been vocal on social media about their ongoing efforts to enhance the AI Pin. Bongiorno recently highlighted the integration of GPT-4o, Google’s Gemini, and improvements in translation, calendar recall, and music interstitials.
Despite these efforts, Humane has faced significant internal turmoil. The company, which secured $200 million in investments, laid off staff before the product launch and has seen frequent changes in its executive team. According to an anonymous source, early testers, including employees’ friends and family, provided negative feedback that was ignored before the product’s release.
The AI wearable market is also seeing challenges with competitors like Rabbit. The Rabbit R1, launched shortly after the AI Pin, has been plagued by security breaches, with the company blaming journalists, hacktivists, and even employees for the issues.
While the future of AI wearables might be showcased by products like the AI companion Friend or the Limitless pendant, both Humane and Rabbit have significant hurdles to overcome.
