HP has acquired artificial intelligence startup Humane for US$116 million (A$182.83 million), and will incorporate Humane’s AI technology and employees into HP.
Humane’s flagship products include Cosmos, an AI operating system, and the Ai Pin, a small wearable AI device.
“This investment will rapidly accelerate our ability to develop a new generation of devices that seamlessly orchestrate AI requests both locally and in the cloud,” said HP’s president of technology and innovation Tuan Tran.
“Humane’s AI platform Cosmos, backed by an incredible group of engineers, will help us create an intelligent ecosystem across all HP devices from AI PCs to smart printers and connected conference rooms. This will unlock new levels of functionality for our customers and deliver on the promises of AI.”
Humane’s engineers, architects, and product developers will form a new AI innovation lab at HP, known as HP IQ. HP IQ will be tasked with building an AI ecosystem for HP’s products.
Humane first contacted HP about a potential acquisition in April 2024, with Humane aiming for a price above US$1 billion. The previous week, its Ai Pin had debuted to poor reviews targeting its lack of features and slow speeds.
More Ai Pins were returned than purchased between May and August last year, The Verge found. Humane launched an investigation into fire risks from the pin’s charging case in June, and cut the device’s price by US$200 in October.
The Ai Pin will be discontinued as part of HP’s acquisition, with devices no longer able to access Humane’s servers after 28 February.
HP expects the deal to close by the end of February.
HP’s share price (NYSE: HPQ) closed at US$34.20, up from its previous close at $33.64. Its market capitalisation is $32.07 billion.
