HP Inc. (HPQ) is boosting its AI capabilities with the acquisition of key assets from Humane Inc., an AI hardware startup, for $116 million. This deal includes Humane’s CosmOS software platform, intellectual property, and a majority of its employees, including founders and former Apple (AAPL) engineers Imran Chaudhri and Bethany Bongiorno. However, the acquisition does not include Humane’s AI Pin wearable device, which the company will discontinue by the end of the month.
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Humane’s AI Pin, said to be a smartphone replacement, received significant attention upon its launch in April 2024. However, the device quickly fell short of expectations due to negative reviews and technical issues. Moreover, returns eventually surpassed sales, and the company even issued a warning about potential battery fires in the charging case.
HP to Integrate AI Across Product Line
Upon the deal’s completion, HP plans to form a new AI innovation lab called HP IQ with Humane’s engineering and product teams. The unit will focus on integrating AI into HP’s existing product line, including PCs and printers, while also developing new AI-powered solutions.
Further, by leveraging the expertise of Humane’s team and their AI platform CosmOS, HP aims to create a more intelligent ecosystem across its devices, such as PCs, printers, and connected conference rooms.
Overall, this move will enable the company to enhance user experiences and strengthen HP’s position in the AI market.
Is HPQ a Buy or Sell?
Turning to Wall Street, HPQ stock has a Hold consensus rating based on three Buys, seven Holds, and one Sell assigned in the last three months. At $37.25, the average HP stock price target implies an 8.92% upside potential. Shares of the company have gained 4.81% year-to-date.
