Amazon has acquired Bee AI, a San Francisco-based startup recognized for its $50 wearable device that listens to conversations, generating AI-generated summaries and reminders for users. The acquisition was confirmed by Bee co-founder Maria de Lourdes Zollo via a LinkedIn post, although details regarding the deal’s terms remain undisclosed.

Bee gained significant attention earlier this year during the Consumer Electronics Show (CES) in Las Vegas, where it introduced its Fitbit-like bracelet designed to deliver personal insights through AI. The device garnered strong feedback for its functionality in analyzing conversations and producing to-do lists, reminders, and daily summaries. Additionally, Bee operates a subscription service priced at $19 per month and offers an Apple Watch app.

Prior to its acquisition, Bee AI successfully raised $7 million in funding, with Zollo stating, “When we started Bee, we imagined a world where AI is truly personal. That dream now finds a new home at Amazon.” The tech giant confirmed the acquisition and is anticipated to incorporate Bee’s technology into its growing portfolio of AI devices.

Recently, Amazon revamped Alexa with generative AI capabilities and implemented similar features into its Ring home security line. Under the leadership of Panos Panay, a former Microsoft executive known for developing the Surface and Windows 11, Amazon’s hardware division is expanding rapidly.

Bee’s acquisition indicates Amazon’s interest in developing its own AI-powered wearables to maintain a competitive edge in the consumer tech industry. It is still uncertain whether Bee will operate independently or be merged into Amazon’s existing device ecosystem.

However, the acquisition raises concerns about privacy, given that Bee’s wearable records audio in real time. Though the company asserts that no recordings are stored or used for AI training and that users can delete their data anytime, privacy advocates have highlighted potential risks associated with always-on recording devices.

Similarly, the AI hardware market has seen varied success. While Meta’s Ray-Ban smart glasses have gained popularity, other products like the Rabbit R1 have failed commercially. The Humane AI Pin also struggled and was recently sold to HP, further showcasing consumer hesitancy toward permanent AI devices.

OpenAI is also venturing into hardware; in May, it acquired Jony Ive’s startup, ia, for approximately $6.4 billion, indicating plans to produce a screenless wearable that conforms with the trend toward ambient AI tools in daily life.

The transition of Bee from startup to acquisition by Amazon demonstrates the intention of big tech to absorb innovations in ambient voice-first AI technology. While the future plans for Bee under Amazon’s umbrella are yet to be clarified, this acquisition could signify a pivotal moment for AI wearables if approached efficiently.