Despite Ai Pin’s horrible reception, Humane somehow thinks it’s worth $1 billion buyout

It’s no secret Humane’s launch of the Ai Pin has been a bit of a dumpster fire. Early impressions and reviews of the AI hardware have questioned its utility, pointing out that most of its functions can be handled by an ordinary smartphone. Compounding the issue, the company confirmed that its charging case may pose a safety risk. This series of missteps has fueled rumors that the company is looking to sell before its situation deteriorates further. A recent report from The New York Times suggests that HP might be one of the potential buyers.

This report also highlights the severity of Humane’s predicament, noting that the company has only managed to secure around 10,000 orders — a far cry from its year-end goal of 100,000 units. Given these challenges, it’s understandable that Humane would want to exit this venture. However, the rumored asking price of around $1 billion is beyond crazy. Seriously, why would anyone spend such a sum? The Ai Pin is basically just a screenless device that utilizes ChatGPT with some customizations. Okay, this might be a slight oversimplification, but it’s not far from the truth.

HP is reportedly just one of several companies Humane has approached. While the report doesn’t specify the others, a source from CNBC mentioned that at least one telecom company is in the mix. Although I have reservations about Humane’s valuation, the bigger question is whether a company like HP would even be interested. While HP isn’t exactly struggling, it also isn’t necessarily at the peak of its power. This kind of investment is pretty risky, even if its past purchase of Palm makes it clear the company isn’t risk averse. HP might be more interested in the employees and general creativity this new blood could bring, but I can’t see HP spending that much just to bring over a few ex-Apple employees.

At this point, just about any buyer would be an improvement from what we’ve seen from Humane so far. Is there really any future for Humane, even with a new owner? That’s much harder to predict, though I have my doubts.