Rabbit Is Back, This Time With an AI Agent App

Jesse Lyu, CEO of Rabbit, asserts that the Rabbit R1 was not a flop, citing its monetary success and a 45-50% hardware margin. The company shipped over 100,000 units globally with less than a 5% return rate, notably without a subscription model for its AI features. However, the launch of OS3 as an app suggests that a dedicated gadget for AI chat might not be necessary, as existing devices are already well-suited for the task.

This report uniquely details Rabbit's shift from a dedicated hardware device to an app-based AI agent, unlike its initial strategy.