Issue #50: AI Hardware Revolution

Omi: Rethinking AI Hardware Through Open Source and Brain Interfaces

In an increasingly crowded AI wearables market, San Francisco-based Based Hardware is taking a unique approach with its latest device, Omi. Rather than trying to replace your smartphone, the startup is betting that the future of productivity lies in complementary AI-powered devices with novel interaction methods.

Key Points:

• Launching at CES 2025 with $89 consumer version (Q2 2025) and $70 developer version

• Features experimental "brain interface" for hands-free activation

• Built on open source platform with 250+ developer-created apps

• Raised $700,000 with $150,000 dedicated to marketing

• Formerly marketed as "Friend" before trademark issues

Omi's approach is refreshingly pragmatic: instead of promising to revolutionize how we interact with technology, it's focusing on enhancing existing workflows through ambient AI assistance. It's like having a smart assistant that's always ready to help, but doesn't demand center stage.

"For us, the user base is actually the core driver of the product itself. The more people that know about us, the better the product becomes because we are built on this open source platform," says Nik Shevchenko, Based Hardware's founder.

The startup's potential impact extends beyond its immediate product. By embracing open source and developer-first principles, Omi could create a new paradigm for AI hardware that prioritizes customization and transparency over walled gardens. But the company's approach also raises important questions about privacy and the role of always-on AI in our daily lives.

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Quick Bites

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🏥 Innovaccer Lands $275M to Build Healthcare AI Platform:

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Vocabulary

💡Each edition we’ll bring you a new “Startup word” to help bolster your vocabulary and understanding of the subject!

Brain Interface: noun /brān ˈintərˌfās/

Definition: A system that enables direct communication between the brain and an external device, typically through the measurement of neural signals.

Why It Matters: As AI becomes more integrated into our daily lives, novel interaction methods like brain interfaces could reduce friction and make AI assistance more natural and accessible.

In Action: Omi's experimental brain interface aims to understand user intent through neural signals, potentially eliminating the need for wake words or manual activation.

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Startup Shutdown Of The Day :(

Epicery: When Premium Food Delivery Meets Economic Reality

French food delivery startup Epicery is closing its doors after nine years of connecting customers with premium local food businesses, marking another casualty in the evolving food delivery landscape.

Key Points:

• Posted negative EBITDA of -€4.69M on €2.57M in sales for 2023

• Previously backed by Geopost/DPDgroup (La Poste's delivery arm)

• Served 25,000 recurring customers across 1,100 local shops

• Generated up to 20% of sales for partner businesses

• Struggled with inflation's impact on premium food spending

Epicery's journey highlights the delicate balance between premium positioning and market realities. Despite creating significant value for local merchants and maintaining a loyal customer base, the company couldn't achieve the scale needed to sustain its operations in an increasingly competitive landscape.

The startup's closure raises important questions about the viability of premium food delivery models in an inflationary environment. While Epicery successfully carved out a niche serving high-end customers and local businesses, its experience suggests that even well-executed premium strategies can struggle when consumer spending tightens.

The fallout from Epicery's shutdown, particularly its impact on local food businesses that relied on the platform for up to 20% of their sales, serves as a reminder of the broader ecosystem effects when startups fail. It challenges us to consider how future food delivery platforms might better balance premium positioning with operational sustainability.