A history of hardware failure
Humane attempts a hardware comeback following its October $100 million Series C funding. I believe the greatest risk to the AI Pin 2 launch remains the company’s damaged reputation from the first device’s collapse. The first AI Pin launch in April 2024 triggered massive buyer regret. Reviewers like Marques Brownlee and Joanna Stern criticized the device for being slow and unreliable, and many users returned the product because the battery life failed to last a full day. The hardware also became uncomfortably hot during use. Returns actually outpaced sales between May and August 2024. The first AI Pin failed when the company ceased cloud support on February 28, 2025, which turned thousands of expensive devices into useless paperweights for customers who expected a reliable, long-term wearable companion. HP acquired the company assets for $116 million in February 2025. Founders Imran Chaudhri and Bethany Bongiorno previously worked on the iPhone and iOS. They raised $230 million before the first product launch. However, the disconnect between the high-end vision and the product reality caused trouble, and the price of the device even dropped from $699 to $499 within months of the initial release. The company’s leadership also missed early warning signs reported by testers.
Technical and economic hurdles
The price structure of the hardware presents a significant hurdle for new customers. You might think a $100 million injection fixes everything, but hardware manufacturing requires more than just cash. The original device cost $699 upfront with a $24 monthly subscription. This model struggled. The first device shipped 10,000 units, and 30% of those were returned by customers. The company reported $1 million in returns against $9 million in sales. The hardware had a 13MP camera and a laser projector with 720p resolution. The charging case also faced fire concerns, which forced users to stop using it. I find the reliance on cloud connectivity to be a persistent weakness. The original device also required a cloud connection for calling, messaging, and AI features. This dependency means that when the company stopped support, the device became a brick, and the technical instability of the original device remains a massive threat to the new launch.
| Feature | AI Pin (Original) | Rabbit R1 |
|---|---|---|
| Upfront Price | $699 | $199 |
| Monthly Fee | $24 | $0 |
| Primary Input | Voice and Gesture | Voice commands |
| Display Type | Laser projector | 2.58-inch touchscreen |
The competition struggle
Competition from the Rabbit R1 and Meta Ray-Bans makes the market crowded. The Rabbit R1 focuses on simplicity and portability with its 2.88-inch touchscreen and rotating camera. It targets people wanting a pocketable assistant rather than a wearable clip. The AI Pin 2 must provide something more than a phone or a smartwatch. The Rabbit R1, which includes a 2.88-inch touchscreen and a rotating ‘rabbit eye’ camera, provides a physical way to interact that the AI Pin lacks. It provides a way to execute tasks through voice. While Humane plans to collaborate with app developers to build tools for its Cosmos operating system, Rabbit R1 uses a Large Action Model to mimic smartphone actions directly. The Rabbit R1 also has a price of $199, which is a quarter of the original AI Pin’s cost, and this price makes it an accessible option for those seeking simplicity. The Rabbit R1 has a regular screen, whereas the original AI Pin relied on a laser projector. Will the new funding prevent the same technical failures that killed the previous model?
