Inside HP’s Strategic Acquisition of Humane AI
The $116M Deal That Split Humane’s Workforce
HP’s partial acquisition of Humane AI for $116 million has created starkly different outcomes for the startup’s 200 employees. While some received lucrative job offers with 30-70% pay increases, others faced immediate layoffs - all on the same Tuesday announcement day.
The Talent Divide: Who Stayed and Who Left
- Retained employees: Core software engineers received offers including:
- Significant salary bumps (30-70% increases)
- HP stock options
- Bonus plans
- Laid-off staff: Primarily hardware-focused roles:
- Quality assurance teams
- Automation specialists
- Operations personnel
This selective retention highlights HP’s strategic focus on acquiring Humane’s AI software expertise rather than its hardware operations.
HP IQ: The New AI Innovation Hub
HP announced the formation of HP IQ, a new innovation lab that will house:
- Humane’s co-founders (Imran Chaudhri and Bethany Bongiorno)
- The startup’s AI operating system (CosmOS)
- Key software engineering talent
The unit will focus on integrating AI capabilities across HP’s product lines, including:
- Personal computers
- Printers
- Connected conference room systems
The Chaotic Transition Day
Employees experienced a rollercoaster of events on announcement day:
- Short-notice meeting: A company-wide Google Meet invitation sent just hours before
- Live announcement: Bongiorno revealed the deal moments before the public press release
- Immediate consequences:
- Some received job offers
- Others got termination notices via email
- System access was revoked immediately for laid-off staff
Humane’s Troubled Journey to Acquisition
The AI hardware startup faced numerous challenges:
Product Struggles
- Poor reviews: The Ai Pin received negative feedback from early testers
- Safety concerns: Charging case briefly deemed a fire hazard
- Executive departures: Head of product engineering left to start a new venture
Financial Pressures
- Returns outpaced sales at one point
- Price dropped from \(699 to \)499
- Final acquisition price (\(116M) was less than half the \)240M raised
The AI Wearables Landscape
While Humane’s Ai Pin failed, the AI wearable market shows promise:
- Meta’s Ray-Ban glasses: Successful sales with new versions coming
- Rabbit’s R1: Now available in Best Buy stores
- Friend AI: Upcoming wearable targeting loneliness
Ironically, Apple just released a $599 AI-packed iPhone that incorporates features similar to those proposed by phone-replacement devices like the Ai Pin.
A Startup Story With Mixed Outcomes
Despite its challenges, Humane achieved notable milestones:
- Sold thousands of devices
- Gained national attention
- Secured a multimillion-dollar acquisition
For retained employees, the transition offers stability and exciting opportunities at HP. For others, it marks the end of an ambitious but troubled venture in the competitive AI hardware space.
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