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Iyo One: The Next Generation of Bluetooth Earbuds with Generative AI

**Interest in New Form Factors for AI Devices**

The launch of Humane’s Ai Pin and Rabbit R1 highlighted the growing interest in a new form factor that utilizes large language models (LLMs) to enhance daily life. However, both devices faced significant criticism. The Ai Pin was considered half-baked and overpriced, while the R1 was deemed unnecessary as it could easily be replaced by an app. Despite these setbacks, the excitement surrounding their launch demonstrates the potential for LLM-based devices to revolutionize how we interact with technology.

**Iyo’s Unique Approach**

Iyo, on the other hand, took a different approach by integrating its generative AI technology into Bluetooth earbuds. With the upcoming launch of the Iyo One, the company aims to build on the existing success of integrating virtual assistants like Alexa and Siri into headphones. This transition to more sophisticated LLM-based models is easier compared to devices like the Ai Pin, which require a complete rethinking of user-device interaction.

**Iyo’s Early Start and Google Connection**

Unlike Humane and Rabbit, Iyo’s founding predates the current AI hype cycle, dating back to 2019. The company was incubated within Alphabet X, the “moonshot factory” responsible for projects like Glass and Project Loon, before spinning off in 2021. While Alphabet served as Iyo’s first investor, the company operates independently without Alphabet’s direct involvement in its board decisions.

**Existing Product and Premium Headphone Experience**

One advantage Iyo has over its competitors is that the One won’t be its first product. Customers can currently purchase the Vad Pro, a wired audio device designed for audio engineers working with digital audio workstations. The Vad Pro showcases Iyo’s virtualization technology, which aids in creating spatial audio mixes. Moreover, the Iyo One is not solely reliant on its AI capabilities; it also functions as a premium pair of headphones. This versatility sets it apart from the Ai Pin and R1, which offer limited value outside of AI features.

**Battery Life and Cost Concerns**

The Iyo One’s larger size is due to the inclusion of a significantly larger battery, allowing for up to 16 hours of usage when paired with a phone in Bluetooth mode. However, when used in cellular mode without a tethered handset, battery life drops to around an hour and a half. Cost is also a consideration, with the Iyo One priced at $599 for the Wi-Fi model and $699 for the cellular version. While this places it in a similar price range as the Ai Pin, it is significantly more expensive than the R1. However, unlike the Ai Pin, the Iyo One does not require a monthly subscription fee.

**Competition in the Bluetooth Earbud Market**

Entering the Bluetooth earbud market poses challenges for startups like Iyo, especially when competing against industry giants like Apple, Samsung, and Google. Additionally, Chinese manufacturers offer inexpensive alternatives that can be purchased for as little as $10. Despite these challenges, Iyo believes that its earbuds will provide immediate value to consumers. By focusing on features that deliver useful benefits right out of the box, Iyo aims to capture a significant market share with its Audio-First Apps (AU apps) and emphasize factors such as sound isolation, comfort, and music quality.