HP Inc. (NYSE:HPQ) today announced a major acquisition that will acquire $116 million in assets of Humane Inc. This agreement represents a strategic step towards HP's deeper integration of AI into its products and services. The acquisition does not include the failed Ai Pin project, which will be terminated. These are primarily the software platform, intellectual property, and most of Humane's employees, including its founders Imran Chaudhry and Bethany Bongiorno.
New AI Division Led by Humane Founders
One of the most significant aspects of this acquisition is that Imran Chaudhri and Bethany Bongiorno, who previously worked at Apple and later founded Humane, will lead the new AI division at HP. The division will focus on integrating AI into PCs, printers, and conferencing systems, expanding HP's portfolio of intelligent solutions for both business and individual customers.
Tuan Tran, head of AI initiatives at HP, emphasized that Humane's ability to combine AI models on the device and in the cloud will be crucial for HP. This hybrid approach will allow for faster and more secure data processing directly on the device, reducing reliance on a constant internet connection while protecting user privacy.
Cosmos Software: The Future of AI in Devices
A key part of the acquisition is the Cosmos software, which Humane developed after the completion of the Ai Pin project. Cosmos is an AI operating system built on an AI agent architecture, designed to support both home and mobile devices.
HP plans to use Cosmos technology to improve the user experience in its products, including laptops, printers, and smart conferencing solutions. With Cosmos, HP devices could adapt to users' needs in real time, analyzing data locally while syncing with the cloud for more complex tasks.
Reasons for the acquisition and strategic plans
With this acquisition, HP reaffirms its commitment to integrating AI across its product portfolio to increase the productivity of business customers and improve the efficiency of its devices. Thus, the company focuses on three key areas in the field of AI:
1. Cost: On-premise AI processed directly on the device can reduce operating costs, as there is no need to constantly use cloud servers.
2. Security: Device-level data processing enhances the protection of personal and corporate data.
3. Speed: On-premises AI can respond faster than cloud solutions, improving overall performance and user experience.
Last year, HP launched a line of computers with AI-optimized chips, laying the foundation for the further development of intelligent solutions. The acquisition of Humane will now allow HP to expand these technologies across its entire product portfolio.
The future of the Humane team at HP
Following the acquisition, the majority of Humane's employees, including key engineers and developers, will join HP. Chaudhri and Bongiorno will lead the AI division, which will focus on developing innovations for HP PCs, printers and other devices.
HP plans to use AI not only to improve productivity, but also to simplify the user experience. As an AI agent operating system, Cosmos will enable automated tasks, personalized settings, and more efficient device management.
Financial background and expectations for the future
HP will pay $116 million for the acquisition, with the deal expected to close by the end of February 2025. Interestingly, Humane was initially looking for a buyer back in May 2024, when it tried to sell for $750 million to $1 billion, but did not find buyers at the asking price.
For HP, this deal is financially beneficial because it gets cutting-edge AI technologies and an experienced team at a relatively low price to help it accelerate the development of intelligent products.
Conclusion
The acquisition of Humane Inc. marks a key step for HP toward a future where AI is an integral part of the technology ecosystem. The integration of Cosmos software and the experience of the Humane team will enable HP to create products that are faster, safer, and smarter, while reducing reliance on cloud solutions. For investors, this means that HP is actively preparing for the era of AI, expanding its capabilities in the business solutions, personal computer, and printer segments. If HP successfully integrates the acquired technologies, it can strengthen its position as a leader in AI devices and increase its competitiveness in the global market, which in turn may be reflected in the share price. [1]
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which is subject to change. Such statements are not a guarantee of future performance. They involve risks and other uncertainties that are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
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