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AI cleaning has reached consumer technology. Dozens of internet-connected devices are now said to be equipped with artificial intelligence. But among the AI grills and mattress toppers, the gadgets that are getting the most attention are smartphone replacements that look like Playmobil toys.
The R1 is an AI “pocket companion” that costs $199 and claims to have sold more than 40,000 units in the United States. pre order In the past week. His Creator Rabbit, for which he has raised $30 million from investors, describes it as a new generation device compared to just a mobile phone. The company claims its “large-scale action model” is trained on existing interfaces such as apps, allowing voice-activated devices to perform tasks on behalf of users, such as booking train tickets.
Integration of generative AI capabilities into smartphones has been slow. A lack of upgrade ideas contributed to last year’s decline in sales. According to IDC data, shipments for the five largest companies fell by 3% in 2023. The total was $1.17 billion, the lowest in 10 years. If AI gadgets account for just 0.1% of global smartphone sales, the market could be worth $500 million. However, smartphone manufacturers have no intention of allowing this to happen.
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Startups find opportunities. AI is already the most popular investment area for venture capitalists. PitchBook tracked about $80 billion worth of VC deals in AI and machine learning last year. Although the total has declined since 2021, it still accounted for 23% of deals, the highest of any sector.
Humane, a San Francisco startup founded by former Apple employees, has already raised more than $100 million for its AI lapel pin. Pricing is similar to Apple’s: $699, plus a $24 monthly subscription to access T-Mobile’s network. Investors include OpenAI. The pin appears to be able to be used to make phone calls, listen to music, and answer questions. However, the startup is laying off employees this month, suggesting that pre-order numbers may be low.
The weakness of both products is their proximity to existing devices. Voice activation already exists. It is already possible to make phone calls and listen to music.
Consultancy Precedence Research predicts that communications will be the largest market for AI hardware. Smartphone companies will not surrender this market to new entrants. Incorporating his AI capabilities into new devices before startups ship their products could eliminate demand for Humane and Rabbit products.
On Wednesday, Samsung announced AI-enabled features for its new phones, including live call translation. Apple is expected to announce the integration of AI models soon. In AI hardware, adaptations of older technologies trump the hype of first movers.
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