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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

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.

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Tech, semiconductor stocks bounce on tariff optimism, Nvidia jumps 7%

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Tech, semiconductor stocks bounce on tariff optimism, Nvidia jumps 7%

Technology stocks bounced Tuesday after three rocky trading sessions, spurred by rising optimism that President Donald Trump could potentially negotiate tariff deals with world leaders.

Nvidia led the Magnificent Seven group’s gains, rallying about 7%. Meta Platforms, Amazon, Tesla, Apple and Microsoft jumped at least 4% each. Alphabet rose about 3%.

The sector is coming off a wild trading session after speculation that the White House could potentially delay tariffs fueled volatile swings. Alphabet, Meta Platforms, Amazon and Nvidia finished higher, while Apple, Microsoft and Tesla posted losses.

Trump’s wide-sweeping tariff plans have sparked violent turbulence over the last three trading sessions. Trading volume on Monday hit its highest in nearly two decades. Technology stocks gyrated after the Nasdaq Composite posted its worst week in five years and the Magnificent Seven group lost $1.8 trillion in market value over two trading sessions.

Semiconductor stocks also rebounded Tuesday, with the VanEck Semiconductor ETF jumping more than 5% to build on a more than 2% gain from the previous session. Advanced Micro Devices, Lam Research and Micron Technology jumped about 6%.

Chipmakers were excluded from the recent tariffs, but have come under pressure on worries that higher duties could diminish demand for products they are used in and slow the economy. The sector is also expected to see tariffs further down the road.

Elsewhere, Broadcom surged 9% after announcing a $10 billion share buyback plan through the end of the year. Marvell Technology also bounced more than 9% after agreeing to sell its auto ethernet business for $2.5 billion in cash to Infineon Technologies.

WATCH: Tariff volatility erases majority of AI stock gains

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Digital health startup Transcarent takes Accolade private in $621 million deal

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Digital health startup Transcarent takes Accolade private in 1 million deal

Glen Tullman, chairman and chief executive officer at Livongo Health Inc., speaks during the 2015 Bloomberg Technology Conference in San Francisco, California, U.S., on Tuesday, June 16, 2015.

David Paul Morris | Bloomberg | Getty Images

Digital health startup Transcarent on Tuesday announced it completed its acquisition of Accolade in a deal valued at roughly $621 million. 

Transcarent first announced the acquisition in January, and the company said it has received all necessary shareholder and regulatory approvals to carry out the transaction. Accolade shareholders received $7.03 per share in cash, and its common stock will no longer trade on the Nasdaq, according to a release.

“Adding Accolade’s people and capabilities will significantly enhance our existing offerings,” Transcarent CEO Glen Tullman said in a statement. “We’re creating an entirely new way to experience health and care. We are truly better together.” 

Transcarent offers at-risk pricing models to self-insured employers to help their workers quickly access care and navigate benefits. As of May, the company had raised around $450 million at a valuation of $2.2 billion. Transcarent also earned a spot on CNBC’s Disruptor 50 list last year.

More CNBC health coverage

Accolade offers care delivery, navigation and advocacy services. The company went public during the Covid pandemic in 2020 as investors began pouring billions of dollars into digital health, but the stock tumbled in the years following.

Accolade is the latest in a string of digital health companies to exit the public markets as the sector struggles to adjust to a more muted growth environment. 

Transcarent said the executive leadership team will report to Tullman and includes representatives from both organizations. Accolade’s Kristen Bruzek will serve as executive vice president of care delivery operations, for instance.  

Tullman is no stranger to overseeing major deals in digital health. He previously helmed Livongo, which was acquired by the virtual-care provider Teladoc in a 2020 agreement that valued the company at $18.5 billion.

General Catalyst and Tullman’s 62 Ventures led the acquisition’s financing, with additional participation from new and existing investors, the release said. The companies also leveraged cash from their combined balance sheet, and JP Morgan led the debt financing.

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Drone delivery startup Zipline expands to Texas with Walmart partnership

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Drone delivery startup Zipline expands to Texas with Walmart partnership

A drone operator loads a Walmart package into Zipline’s P1 fixed-wing drone for delivery to a customer home in Pea Ridge, Arkansas, on March 30, 2023.

Bunee Tomlinson

Zipline, a startup that delivers everything from vaccines to ice cream via electric autonomous drones, expanded its service to the Dallas area on Tuesday through a partnership with Walmart.

In Mesquite, Texas, about 15 miles east of Dallas, Walmart customers can sign up to receive orders within 30 minutes, delivered on Zipline’s newest unmanned aerial vehicles, known as P2 Zips.

The drones are capable of carrying up to eight pounds worth of cargo within a 10-mile radius, and can land a package on a space as small as a table or doorstep. The company, which ranked 21st on CNBC’s 2024 Disruptor 50 list, plans to expand soon in the Dallas metropolitan area.

Zipline CEO and co-founder Keller Rinaudo Cliffton said P2 Zips have “dinner plate-level” accuracy. They employ lift and cruise propellers and feature a fixed wing that helps them maneuver quietly, even through rain or gusts of wind up to 45 miles per hour.

In the delivery process, a P2 Zip will hover around 300 feet above ground level and dispatch a mini-aircraft with a container called the delivery zip, which descends on a long tether and moves into place using fan-like thrusters before setting down and allowing package retrieval.

Both the P2 Zip and the delivery zip use cameras, other sensors and Nvidia chips to determine what’s happening in the environment around them, and to avoid obstacles while making a delivery.

In March 2025, Zipline announced that its drones have logged more than 100 million autonomous miles of flight to-date, a number equivalent to flying more than 4,000 loops around the planet, or 200 lunar round trips, the company said in a video to mark the milestone.

Since it began operations in 2016, Rinaudo Cliffton said, Zipline has completed around 1.5 million deliveries, far more than competitors in the West. Wing, a Zipline rival focused on residential deliveries, has reported more than 450,000 deliveries since 2012.

Zipline initially focused on logistics in health care, making deliveries by drone to clinics and hospitals in nations where infrastructure sometimes impeded timely access to life-saving medicines, blood, vaccines and personal protective equipment. The company, valued at $4.2 billion in a 2023 financing round, is now making deliveries in Rwanda, Ghana, Nigeria, Côte d’Ivoire, Kenya, Japan and the U.S., and expanded well beyond hospitals and clinics.

In addition to Walmart, customers include Sweetgreen, Chipotle and other quick-serve restaurants, as well as health clinics and hospital systems such as Cleveland Clinic and Mayo Clinic.

Zipline’s launch in Mesquite comes days after President Donald Trump’s announcement of widespread tariffs roiled markets on concern that companies would face rising costs and a slowdown in consumers spending. Rinaudo Cliffton said he doesn’t anticipate massive impediments to Zipline’s business, as its drones are built in the U.S., with manufacturing and testing in South San Francisco.

WATCH: Zipline releases drone for rapid home delivery

Zipline releases new drone designed for rapid home deliveries

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