From Wearable to Web App
Friend AI, the startup that raised nearly $8 million to create a screenless AI companion pendant, has essentially abandoned its hardware ambitions. After selling only about 1,000 units of its $130 wearable device, founder Avi Schiffmann has pivoted to offering the AI as a free web-based chatbot.
The company had positioned itself as a solution to loneliness, with Schiffmann insisting the device wasn’t meant to be an assistant but rather a genuine friend. The wearable was designed to text users when it was time to interact, creating what the company called an “AI friend” experience.
But the pivot comes after significant financial struggles. The company spent $1.8 million just on the domain Friend.com and another $250,000 on a YouTube commercial that gained notoriety. Millions more went toward subway and bus advertisements in major cities like New York and Los Angeles.
Financial Reality Sets In
With only around $150,000 in revenue from hardware sales against nearly $8 million in funding, the math simply didn’t work. The company had backing from notable investors including Austin Rief of Morning Brew and Anatoly Yakovenko of Solana, but the wearable approach failed to gain traction.
I think what’s interesting here is how quickly the company had to change direction. When you’re spending millions on advertising and only making thousands in sales, something has to give. The pivot to a free web version suggests they’re hoping to build an audience first, then maybe monetize later.
Perhaps the hardware approach was just too ambitious for what people actually want from an AI companion. Or maybe the timing was wrong. It’s hard to say.
Redefining Friendship
The company’s advertising campaign had specifically defined what a friend is: “someone who listens, responds, and supports you.” But Schiffmann appears to have broadened this definition significantly. Now, according to the company’s messaging, a “Friend” is simply anyone you’ve interacted with, even just once.
This shift in definition feels a bit like moving the goalposts. When your original vision doesn’t resonate, you change what the vision means rather than admitting the concept might be flawed.
Industry Parallels
Friend AI’s trajectory mirrors that of Humane Inc., which also attempted a wearable AI device that failed to gain market acceptance before being acquired by HP. Both companies faced the same fundamental challenge: creating AI hardware that people actually want to use and pay for.
Despite negative reviews from publications like Wired and tech influencers, Schiffmann continues to receive support from Silicon Valley circles. It makes you wonder if in some tech circles, the act of “pushing a message” is valued more than actual product success or user satisfaction.
What’s clear is that the path from AI concept to successful product remains incredibly difficult. The pivot to a free chatbot might keep the company alive for now, but it’s a long way from the original vision of an AI friend you wear around your neck.
