From WIRED · Julian Chokkattu · · 3m
Rabbit's AI agent OS pivots from hardware to software
After the R1 flopped, Rabbit is betting on OS3, a cross-platform agent system that runs on devices you already own.
In brief
After the R1 flopped, Rabbit is betting on OS3, a cross-platform agent system that runs on devices you already own. Rabbit learned that people don't need dedicated AI hardware; they need AI agents that work across their existing devices. Originally reported by WIRED.
The R1 was supposed to be revolutionary
Rabbit's R1 launched at CES 2024 as dedicated AI hardware that could book Ubers and order food. It got slammed with reviews and a 3 out of 10 from WIRED.
But the company says it was actually successful
Rabbit sold over 100,000 R1 devices with less than 5 percent returns and made 45 to 50 percent margins on hardware, all without charging a subscription.
The company faced serious financial trouble
A failed India launch and poor reviews left Rabbit strained. Some employees went on strike over unpaid wages, though the company later secured more funding.
Rabbit stayed lean and focused on software
Instead of expanding the team or rushing new hardware, Rabbit deployed about 50 updates to the R1 and built a Discord community of 12,000 users for feedback.
The R1 became more open and customizable
Users can now integrate third-party AI agents like OpenClaw or Hermes into the R1 instead of using Rabbit's proprietary models.
“Today, if you look at our R1 device, it's completely different from day one.”
Meet OS3, the new agentic operating system
Rabbit announced OS3 on Tuesday as a standalone platform that runs across multiple screens and devices. It works on desktop browsers, Telegram, iMessage, and the R1.
OS3 connects to devices you already own
The platform lives in the cloud but connects to your desktop, files, and web pages through a local agent node on Windows, Mac, or Linux. One account links up to five machines.
It uses a simple chat interface for everything
OS3 has one continuous chat stream where you describe what you want. The system coordinates models and tools to execute tasks, and you can add third-party agent skills by pasting a URL.
No subscription, but you bring your own API keys
OS3 uses a bring-your-own-key approach. There's no monthly fee, but users supply their own API keys from OpenAI, Anthropic, or link local open source models.
The R1 is being phased out for new hardware
Rabbit stopped manufacturing the R1 and existing stock is dwindling. The next hardware release, coming within months, is a Cyberdeck designed for vibe coding that will run OS3.
The pivot proves people don't need new gadgets
By launching OS3 on existing devices, Rabbit quietly admits that people never needed another pocket gadget to chat with AI. They already had the best tool for the job.
The headline
Rabbit learned that people don't need dedicated AI hardware; they need AI agents that work across their existing devices.
