Humane company is forced to shut down. End of the AI hype.

This $850M startup is now shutting down and selling assets for just$116M.

This $850M startup is now shutting down and selling assets for just$116M.

Humane Inc., founded by ex-Apple execs Imran Chaudhri and Bethany Bongiorno, aimed to revolutionize personal technology with its AI Pin - a wearable, voice-activated assistant.

But now, less than a year after its launch, the AI Pin is gone, and Humane Inc. is being sold for spare parts.

So, what went wrong?

Let’s break it down:

1. Bold vision, flawed execution

Humane marketed the AI Pin as an "iPhone killer," but failed at product design. Slow response times, overheating issues, and an awkward user experience made it feel like a prototype.

2. A flawed pricing strategy

The $699 price was high as is, but the added$24/month subscription made possible customers say “I’ll just use my phone”.

3. Skipping real-world testing

Poor battery life, laggy cloud processing, and unreliable voice commands made it impractical for everyday use - issues that should’ve been caught in testing.

4. Operating like a corporation, not a startup

Humane followed Apple’s “big reveal” strategy instead of iterating based on user feedback. Prioritizing design over function, they ignored early warnings and launched an unfinished product.

5. No ecosystem, no adoption

Unlike Apple or Google, the AI Pin had no app store, third-party integrations, or seamless device compatibility, leaving users with a standalone gadget that didn’t fit into their workflow.

6. Burned cash without a backup plan

Despite raising $230M, Humane’s high burn rate meant they needed mass adoption fast. When early reviews highlighted flaws, demand collapsed, and they had no pivot strategy.

Author

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