Generative AI’s hype has yet to lead to a must-have gadget for the holiday season
Ray-Ban Meta smart glasses
Meta
Shoppers looking for gadgets and gizmos powered by generative AI technology to gift to their loved ones won’t have many options to choose from this holiday season.
Generative artificial intelligence has taken Silicon Valley by storm since the launch of OpenAI’s ChatGPT chatbot in November 2022. Although startups have raised billions to build new GenAI tools and tech giants have bought millions of Nvidia processors to train AI models, few companies have delivered new hardware built with the new-age tech as its focal point.
There was a lot of optimism over the potential of GenAI gadgets at the CES trade show in January, said Paul Gagnon, vice president for analyst firm Circana. In particular, products from high-profile startups such as Humane and Rabbit, which were marketed as being able to translate, answer questions, take voice memos and set alarms, were drawing buzz, Gagnon said.
But many of these new GenAI devices didn’t work as well as people expected, with reviewers saying that the gadgets were too slow and too prone to failure.
“As we’ve gone through the year, and those kinds of promises — which I’ll be honest, were pretty nebulous to start with — there’s been a bit of a struggle with communicating that to consumers,” Gagnon said.
A key reason GenAI hardware hasn’t had a breakthrough is that current devices are “compute restrained,” meaning they require more powerful silicon chips and related components to perform better, particularly when compared with smartphones, said Ben Bajarin, CEO of Creative Strategies, a market research firm.
Additionally, consumers may find current GenAI devices too expensive, and they may be confused about what the devices can actually do, he said.
GenAI devices, such as the Ray-Ban Meta smart glasses, also typically require a smartphone connection for an accompanying app as well as strong internet access, because a bad internet connection can lead to performance delays that frustrate people, Bajarin said.
While companies such as Microsoft, Apple, Intel, Dell and Lenovo have also heavily marketed new lineups of personal computers capable of performing GenAI tasks, consumers have yet to perk up to the sales pitch, said Ryan Reith, an IDC program vice president for mobile devices.
“I don’t think that there’s actually a need for consumers to go out and get one of these more expensive PCs,” Reith said, noting that people may be confused about why they need beefier computers when they can already access tools such as ChatGPT through their current PCs.
The reality is that while GenAI has captivated Silicon Valley, it’s still “inning zero” in regard to widespread adoption, Bajarin said.
“Even though I can rattle off all these productivity stats of how people are using AI today, it’s a very small number of people,” he said. “This is not mainstream.”
It may not be until 2025 that consumers see a “big explosion” in GenAI computers, smartphones and new gadgets, said Steve Koenig, vice president of research at the Consumer Technology Association, which produces CES.
Despite Silicon Valley not having a breakout year for GenAI hardware, here are a few GenAI devices early adopters can buy.
Ray-Ban Meta glasses
Meta released the second generation of its Ray-Ban smart glasses in 2023, but the company began rolling out GenAI features for the device earlier this year and announced several new AI capabilities at its Connect event in September.
The glasses don’t offer users augmented reality capabilities, but people can use the device to take photos, listen to music and ask the Meta AI digital assistant for information about the things within their field of view.
With the help of the device’s mics and camera, for instance, users can ask the Meta AI digital assistant to recommend a recipe when they walk through a grocery aisle and scan the shelves, the company said in a blog post.
Meta, which makes Facebook and Instagram, is selling certain versions of the glasses for 20% off through Dec. 2. This means that a pair of the Ray-Ban Meta Skyler style of glasses will cost $239.20 instead of $299 if bought online.
Rabbit r1
The Rabbit r1 is a $200 gizmo that looks like an orange, miniaturized tablet with a playful aesthetic that’s more Nintendo Switch than Apple iPad.
Outfitted with a camera and dual mics, the r1 can record audio clips and set timers or perform more advanced tasks, such as helping users recall details from past conversations, search results and voice recordings. After the device began shipping in March, reviewers criticized the r1 for stumbling at various tasks and failing to outshine smartphones that can do many of the same functions.
The startup “has used that feedback to rapidly make very significant improvements to the user experience” and has released scores of updates to improve, Rabbit CEO Jesse Lyu told CNBC in a statement.
Despite the harsh reviews, Rabbit has “sold more than 100,000 r1 devices when we originally expected to sell only 3,000” and the company is “seeing a return rate of less than 5%, which is very solid for a first-generation product,” Lyu said.
Rabbit is currently running a deal that gives shoppers free shipping, or $15 off, if they order an r1 by Dec. 4.
Bee
After raising $7 million in funding in July, the startup Bee AI will begin selling its GenAI device, the Bee, on Friday.
The Bee looks like an internet-connected smartwatch and functions like an advanced digital assistant. Its dual mics allow it to listen and analyze people’s voice memos and conversations to provide summaries and to-do lists, Bee AI CEO Maria de Lourdes Zollo told CNBC.
The Bee can also be integrated with health-care tools and people’s Google and Gmail accounts to help generate personalized summaries and action items, Zollo said. Although the startup offers a Bee app for the Apple Watch for people who don’t want to buy another hardware device, she said the core Bee device is better at understanding voices in loud environments.
Shoppers can buy the Bee for $49.99 and get its basic tasks, but they will have to pay a $15-per-month subscription for more features such as “better memory or better capabilities,” Zollo said.
For Black Friday, Bee is offering shoppers three free months of the device’s subscription service. The device should ship in time for Christmas, Zollo said.
Watch: Former Apple designers launch $700 Humane AI Pin as smartphone replacement.
Jakub Porzycki | Nurphoto | Getty Images
Standard Chartered’s bullish crypto analyst still sees bitcoin’s price hitting $500,000 during Donald Trump’s presidency — even after a selloff that sank the world’s largest digital currency to a three-month low.
Geoffrey Kendrick, who heads up digital assets research at Standard Chartered, told CNBC he believes bitcoin will hit the $200,000 mark this year before climbing even further in the coming years.
“Within the crypto ecosystem, what we need are traditional financial players, like Standard Chartered, like BlackRock and others that have the ETFs now to really step in,” Kendrick said in an interview with CNBC’s “Squawk Box Europe” Thursday.
“As the industry becomes more institutionalized, it should be safer,” Kendrick said, adding that this should result in fewer negative headlines — such as the recent $1.5 billion hack on cryptocurrency exchange Bybit last week.
This increase in crypto adoption by institutions, coupled with some “regulatory clarity” in the U.S., should lead to less volatility over time, he added.
“That should add to that medium term, top-side potential, which for me is bitcoin up to $200,000 this year, and $500,000 before Trump leaves office,” Kendrick told CNBC.
Kendrick said the catalyst necessary for large financial institutions to gain confidence to invest in bitcoin and other crypto assets is a stabilization in prices and increased regulatory clarity.
Bitcoin earlier this week sank to a three-month low below $90,000 amid declines in global equity markets. As of Thursday, the token was trading at $86,418. That means it’s down about 20% from an all-time high of $108,786, which the coin peaked at in January, according to CoinGecko data.
Standard Chartered’s Kendrick said digital currencies have dropped more broadly due to uncertainty around tariffs and resolutions to major wars such as Russia-Ukraine and Israel-Gaza.
“Risk assets don’t like uncertainty, and so that’s what we’ve seen. We’ve seen tech stocks in the U.S. coming lower,” Kendrick said, adding that the breach of Bybit has also contributed to negative sentiment surrounding crypto more broadly.
He expects the outlook for crypto will improve later in the year as traders await key regulatory developments in the industry, such as new rules around stablecoins and anti-money laundering.
“That should further legitimize, so you’ll see more U.S. banks involved. You’ll see larger institutions in the U.S. continue to push through,” Kendrick said.
Kendrick was one of the numerous market analysts who predicted a doubling in bitcoin’s price this year to $200,000. Bitcoin broke the highly anticipated $100,000 mark in December following Trump’s election to the U.S. presidency.
Crypto bulls view Trump positively given his support for digital currencies. In January, Trump signed an executive order promoting the advancement of cryptocurrencies in the U.S. and developing a national digital asset stockpile.
Crypto investors, companies and executives accounted for almost half of corporate donations in the 2024 election cycle, with some contributing tens of millions of dollars to Trump’s campaign.
Stripe announced a tender offer for employees and shareholders on Thursday that values the payments startup at $91.5 billion, the closest the company has been to its peak valuation of $95 billion in 2021.
“We very much care about providing good liquidity for employees and existing shareholders,” Stripe co-founder and President John Collison told CNBC’s Andrew Ross Sorkin in an interview on “Squawk Box.”
As for the company’s long-awaited public market debut, Collison said, “We are not dogmatic on the public vs. private question,” and “have no near-term IPO plans.”
Stripe also revealed in its annual letter on Thursday that it generated $1.4 trillion in total payment volume in 2024, up 38% from the year prior. The company said it was profitable in 2024, and expects to remain so this year.
Collison said the business can’t be managed on a “super tight quarterly EPS basis because this growth tends to come in waves.”
Stripe ranked third on CNBC’s Disruptor 50 List for 2024, jumping from the 28th position in 2023.
Collison said the artificial intelligence boom has been key to the company’s recent growth. High-profile AI startups OpenAI, Anthropic, Perplexity and Mistral are all Stripe clients.
“Unlike maybe previous booms that were more speculative in nature where you had asset price speculation, here we are seeing an AI boom that is very real,” Collison said. “There’s a bunch of companies that have grown and grown and grown over the past few years, but they’ve grown because they have real revenue and they have real revenue because they have customers that find their products really useful.”
More than 700 AI agent startups launched on Stripe last year, according to the company’s annual letter. Collison said a future where agents will make purchases for human customers is inevitable.
Founded in 2010, Stripe has regularly conducted tender offers to allow early investors and employees to sell a portion of their equity in order to reduce the pressure to go public. A year ago the company announced a tender offer at a $65 billion valuation.
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