The Alphabet X spinout Iyo is gearing up to launch its Iyo One earbuds this winter, with prices starting at $599. This announcement comes on the heels of Humane’s co-founders reportedly putting their startup on the market after the underwhelming performance of their Ai Pin.
Similarly, the Rabbit R1, Humane’s primary competitor, faced criticism shortly after its release. Reviewers described the generative AI-powered handheld device as “half-baked,” arguing it should have been an app instead of a $200 piece of hardware.
The buzz around both devices indicates a significant interest in new form factors leveraging large language models (LLMs) for everyday use. However, achieving a successful implementation has proven challenging.
Iyo introduces a new approach by integrating its technology into Bluetooth earbuds, a well-established category. Unlike Humane’s attempt with a novel lapel pin, Iyo builds on the popularity of Bluetooth earbuds. The Iyo One benefits from the familiarity consumers already have with AI assistants like Alexa and Siri in headphones, easing the transition to more advanced LLM-based models.
Iyo’s origins date back to 2019, preceding the current AI hype. Founder and CEO Jason Rugolo observed substantial progress in language models across various research organizations and companies, foreseeing that foundational models would become commoditized. Iyo was incubated within Alphabet X and spun off in 2021. Unlike other Alphabet X projects, Iyo operates independently, with Alphabet as an initial investor but without a board seat.
The Iyo One isn’t the company’s first product. Iyo already offers the $1,650 Vad Pro, an in-ear studio reference monitor designed for spatial audio mixing. This product underscores Iyo’s commitment to premium quality, a promise extended to the Iyo One, which can serve as high-quality headphones beyond their AI features.
The Iyo One earbuds are larger than typical Bluetooth earbuds, partly due to a bigger battery that offers up to 16 hours of use in Bluetooth mode. In cellular mode without a connected handset, battery life drops to around an hour and a half. The earbuds are priced at $599 for the Wi-Fi model and $699 for the cellular version. While comparable to the Ai Pin, this is more expensive than the Rabbit R1. Unlike the Ai Pin, the Iyo One does not require a monthly subscription, though the cellular version will need a carrier plan.
Despite challenges in the Bluetooth earbud market, as demonstrated by Nura’s acquisition by Denon, Rugolo is confident in Iyo’s value proposition. Competing with industry giants and budget options, Iyo aims to deliver immediate value with features like sound isolation, comfort, and music quality.
“We believe this is a platform with millions of potential ‘Audio-First Apps,’ but people buy products that offer immediate utility,” Rugolo said. “Just on sound isolation, comfort, and music quality alone, we see a large market for these devices.”
