HP Announces $116M Deal To Buy AI Pin Maker Humane’s Technology & Assets: Retail Mood Improves

Shares of HP, Inc. (HPQ) saw subdued performance in Wednesday’s premarket trading after the computers and peripherals maker announced an acquisition to deepen its artificial intelligence (AI) focus.

The Palo Alto, California-based company said late Tuesday it has agreed to acquire key AI capabilities from Humane, Inc. for $116 million The latter is a consumer electronics company known for its AI Pin, a futuristic wearable device, and was founded by ex-Apple, Inc. (AAPL) engineer Imran Chaudhri and his wife, Bethany Bongiorno.

The agreement also provides for the purchase of Humane’s AI-powered platform Cosmos, technical talent, and intellectual property, with more than 300 patents and patent applications.

Citing an HP spokesperson, a Bloomberg report said the deal will not include Humane's devices business, which will be wound down.

HP said the deal advances its transformation into a more experience-led company.

Tuan Tran, president of Technology and Innovation at HP, said, “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.”

Humane engineers, architects, and product innovators, including its co-founders, will join the Tran-led unit and form HP IQ, the company’s new AI innovation lab focused on building an intelligent ecosystem across its products and services for the future of work.

The deal is expected to close at the end of February.

Humane’s AI Pin was launched in November 2023 and was marketed as a potential replacement for a smartphone, although without a screen. It was priced at $699 and also involved a $24 monthly subscription fee. 

However, the uptake was poor due to negative reviews regarding features and functioning. 

On Stocktwits, sentiment toward HP stock improved to 'bullish' (68/100) from the 'neutral' mood that prevailed a day ago, with the message volume improving to a 'neutral' level.

HP sentiment and message volume February 19, premarket as of 7:50 am ET | Source: Stocktwits

In premarket trading, HP stock slipped 0.56% to $34.01. It has gained about 5% this year, following a 12% rise in 2024.

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