HP bolsters AI capabilities with Humane acquisition

PALO ALTO, Calif. - HP Inc. (NYSE:HPQ), a $32 billion technology leader with annual revenue exceeding $53 billion, has entered into a definitive agreement to acquire artificial intelligence assets from the technology company Humane. The deal, valued at $116 million, includes the AI-powered platform Cosmos, a team of highly skilled engineers, and a portfolio of over 300 patents and applications. This move is part of HP’s strategy to transform into a more experience-led company. According to InvestingPro analysis, HP currently trades near its Fair Value, with a moderate P/E ratio of 12.

Tuan Tran, President of Technology and Innovation at HP, emphasized that the acquisition will significantly speed up the company’s ability to craft a new generation of AI-integrated devices. He stated that Cosmos and the Humane team will be instrumental in creating an intelligent ecosystem that spans across HP’s range of products, enhancing functionality for customers. The company’s strong financial position, highlighted by its 3.44% dividend yield and 55-year track record of consistent dividend payments, provides stability for such strategic investments.

The acquisition is set to bring the Humane team into HP’s fold, where they will establish HP IQ, a new AI innovation lab. This lab will focus on integrating intelligence into HP’s diverse product and service offerings, particularly in the context of evolving workplace needs.

Bethany Bongiorno and Imran Chaudhri, Co-founders of Humane, expressed enthusiasm about joining HP. They anticipate that their design-led approach and integration technology, combined with HP’s scale and operational excellence, will redefine workforce productivity.

HP’s commitment to reinventing the future of work is underscored by this move, as the company seeks to deliver technology-driven experiences that empower organizations and employees in a rapidly changing work environment.

The transaction is expected to close by the end of the month. HP Inc., a global technology leader, operates in over 170 countries and offers a wide array of devices and services, including personal computing, printing, 3D printing, and hybrid work solutions. InvestingPro subscribers can access 10+ additional exclusive insights about HP’s financial health, valuation metrics, and growth prospects through the comprehensive Pro Research Report, helping investors make informed decisions about this established tech player.

This news article is based on a press release statement from HP Inc.

In other recent news, HP Inc. has seen significant changes in its leadership and board structure. The technology giant welcomed a new independent director, Songyee Yoon, to its board, expanding the board from 13 to 14 members. Yoon, the Managing Partner of Principal Venture Partners, L.P., brings a wealth of experience in technology and AI, which is expected to play a pivotal role in advancing HP’s strategic initiatives.

Additionally, HP named Carol Surface as its new Chief People Officer, taking over from Kristen Ludgate. Surface’s expertise in building high-performance teams and driving business growth is anticipated to be instrumental in the company’s workforce development.

In the realm of market performance, Bernstein analysts maintained a Market Perform rating on HP’s shares, citing concerns about the sustainability of the company’s printing business and a modest year-over-year decline in operating profits. Despite these challenges, the analysts highlighted that HP’s stock remains relatively inexpensive.

These recent developments underscore HP’s ongoing efforts to enhance its leadership and governance structures while navigating a challenging market environment.

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