Humane, the company behind the AI Pin, is facing a difficult situation. After initially generating excitement with its AI-powered device, the company is struggling with low sales, high return rates, and uncertainty about its future.
According to internal sales data reported by The Verge, the number of AI Pin returns has surpassed the number of units sold in the past quarter ending in August. The report states that only around 7,000 units remain in customer hands, leaving Humane with a stockpile of returned devices worth over a million dollars.
One key obstacle is a carrier deal with T-Mobile. Since the AI Pin is linked to a specific carrier account after being shipped, it cannot be easily reassigned to another customer upon return, making refurbishment and resale difficult.
Humane originally aimed to sell 100,000 AI Pins, but only managed to ship 10,000 units. Despite attempts to improve the device, including upgrading to OpenAI’s GPT-4 model, customer feedback remains mixed.
Users have reported issues with the AI Pin’s heating, battery life, and responsiveness. Reviews on Reddit mention the device shutting down due to overheating and experiencing latency in responding to voice commands.
In May, Bloomberg reported that Humane was seeking a sale for between $750 million and $1 billion. However, no such deal has materialized. The company is also experiencing high-profile departures and internal restructuring as it tries to navigate the challenging landscape of AI hardware.
The future of Humane and its AI Pin remains uncertain. With a lukewarm reception from customers, a failed carrier deal, and a lack of acquisition interest, the company faces an uphill battle in a market where AI hardware is yet to find widespread success.
