Friend AI pendant relaunched with speaker and higher price, sparking business model debate

Friend, the startup behind an AI-powered wearable pendant, has released a new version that adds a built‑in speaker and raises the price from $129 to $249. The device now includes a $10‑per‑month subscription that extends conversation memory beyond 30 days. Founder Avi Schiffmann promoted the update on social media, referencing a earlier protest against the company’s advertising in New York City.

Industry analysts note that the pendant’s upgrade also highlights a broader clash of monetisation strategies in the wearables‑AI market. Friend’s model relies on a subscription‑first approach, whereas Meta’s Ray‑Ban smart glasses are sold near cost to capture behavioural data for its advertising platform. The comparison underlines differing revenue logics—relationship‑driven subscriptions versus data‑driven advertising.

The launch marks a shift from a passive listening device to one that can actively talk back, positioning Friend among competing AI companion products.