The AI hardware landscape is being disrupted, one that has the potential to remake the devices we use daily. Two significant maneuvers in the last week alone made headlines: OpenAI scooped up Jony Ive’s design firm, LoveFrom’s spinoff “io,” in an all-equity $6.5 billion transaction, and HP acquired portions of Humane, the erstwhile vanity AI wearable startup, for pennies on the dollar of its height of valuation. These aren’t just splashy headlines—they’re signs of a growing push to build the next generation of personal tech.
So what’s happening—and why does it matter?
OpenAI + Jony Ive: A Vision for the Future of Devices
When OpenAI CEO Sam Altman partners with Apple legend Jony Ive, expect big things. While their joint project, in the form of OpenAI’s acquisition of Ive’s company, i/oo, is not specifically a product, it is more about redefining the way we relate to technology.
Altman has stated that the technology we currently use is “decades old,” and that it makes sense to wonder, “What’s next?” Ive, who worked to create products such as the iMac and iPhone, believes that we are at a crossroads. “Computers are now looking, thinking, and comprehending,” he said. “And yet our experience is still influenced by legacy products and traditional interfaces.
Though specifics are still under wraps, the direction is unmistakable: AI-enriched hardware that becomes one with our lives. Consider ambient devices that quietly innovate ahead of your needs, or wearables that provide delicate, contextual guidance. Altman’s already foreshadowed one prototype as “the coolest piece of technology the world will have ever seen.”
Humane’s Cautionary Tale: Bold Ideas, Harsh Realities
As I’ve and OpenAI move forward, the failure of Humane serves as a grim reminder of just how difficult it is to get the hardware for AI right.
A former Silicon Valley darling, Humane attracted $240 million in funding and vowed to make smartphones obsolete with its AI Pin—a screen-free, wearable AI-powered assistant. But the enthusiasm soon disintegrated. The product was roundly panned, beset by technical issues (including a battery recall), and ended up with more returns than purchases. Humane reduced prices, and after HP acquired it, instructed customers to “recycle” their $499 devices, which will soon no longer function.
HP’s actual interest wasn’t the hardware. It was the group. The company made overtures to core software and AI employees, many of whom were given substantial raises, up to 70% in some cases, along with bonuses and stock. Others, however, especially those working on the hardware side, were let go suddenly and were cut off from company systems overnight.
The deal marks HP’s larger plan: acquire AI talent and bring it in-house to drive next-gen capabilities across its core product lines—from PCs and printers to enterprise software. Its new AI-centric division, HP IQ, will be headed by Humane founders and fueled by its AI operating system, CosmOS.
Why AI Hardware Is So Hard to Get Right
Humane’s failure was not ambition—it was execution. The Ai Pin’s vision was great, but the product did not deliver on a fluid, useful experience. As The Outpost summed it up, “It’s not enough to graft a powerful AI chip onto a novel form factor—the device must feel as natural as flipping open a book or tying your shoelaces.”
The most effective technologies seem to fade into the background. They’re intuitive, useful, and seamless. That’s a lofty standard—and one that even moneyed companies find difficult to attain.
While they wait, other AI-enabled products are still searching for their niche. Meta’s smart glasses, Ray-Ban, have experienced gradual adoption. Rabbit’s R1 has made it to Best Buy store shelves. Even Apple, rumored for years to abandon the smartphone, just released an updated iPhone filled with AI capabilities—ironically doubling down on the very same device startups sought to revolutionize.
The Talent Wars: AI Engineers Are the New Rockstars
If anything is certain, it’s this: AI talent is the hottest asset in technology today. HP’s aggressive recruitment and salary packages offered to Humane’s software engineers reflect just how intense competition has gotten.
As TechCrunch so aptly phrased it, “Engineers who can build around AI systems are some of the hottest commodities in Silicon Valley today.” Even old-school tech firms are competing to usher in this talent, realizing that without it, they’ll be left in the dust.
What’s Next for Personal Tech?
Between OpenAI’s bold vision and HP’s strategic pivot, the message is clear: we’re entering a new era for hardware, one defined not just by sleek designs or faster processors, but by intelligence.
The future generation of personal devices will not only show us information or take commands. They will learn, they will adapt, and they will respond in rich, deeply personal, intuitive ways. They will harmonize the physical and digital, providing experiences that feel less like tools and more like partners.
The smartphone can still reign supreme, but its days as an absolute ruler are over. The competition to see what comes next is on.
