Rabbit, maker of the panned R1 AI hardware device, is pivoting to OS3, a software-based agentic operating system accessible via desktop, Telegram, and iMessage rather than dedicated hardware. CEO Jesse Lyu argues the R1 was financially successful despite poor reviews, claiming over 100,000 units sold with strong margins, and says the company is now focusing on software updates and openness rather than new hardware.
Rabbit is launching OS3, a cloud-based AI agent operating system that runs locally on Windows, Mac, and Linux without requiring its R1 hardware device. The startup has ceased R1 manufacturing but plans to release a new cyberdeck device running OS3 within months, while allowing users to connect up to five devices and integrate their preferred AI models.