Information regarding the company’s headquarters and leadership is derived from official announcements by rabbit.3

rabbit distinguishes itself by attempting to make AI the operating system itself, rather than merely integrating AI features into existing platforms. Conventional smartphone interaction typically requires users to open applications, navigate menus, and manually input data to complete tasks. In contrast, rabbit’s intended model allows users to articulate a goal, after which an AI agent determines the necessary steps and operates the relevant software autonomously.

This approach positions rabbit differently from conversational chatbots; its primary value proposition is action rather than conversation. The underlying technology enabling this functionality is termed the Large Action Model (LAM).4

Foundation and early funding

rabbit was founded in 2023 by Jesse Lyu, an entrepreneur and AI researcher who previously established Raven Tech. Raven Tech focused on conversational AI operating systems and consumer hardware before being acquired by Baidu, with some of its technology subsequently deployed in smart speakers.5

The founding thesis of rabbit posited that the graphical user interface and app-centric operating system model had become unnecessarily complex. Rather than improving interfaces for individual applications, the company sought to build an AI layer capable of understanding and operating those interfaces directly.

In October 2023, rabbit announced a US$20 million funding round led by Khosla Ventures to develop a personalised operating system driven primarily by natural language.6 By December 2023, the company secured an additional US$10 million, bringing its total stated funding to US$30 million ahead of its first hardware launch.7

Product expansion and evolution

Following the release of the r1, the company continued to evolve its platform. While the initial software received mixed reviews, rabbit released rabbitOS 2 in September 2025 as a comprehensive overhaul of the user experience.3 The company subsequently launched rabbit intern in June 2025 as its first major software-only product,4 and introduced DLAM in January 2026 to enable computer control capabilities.5

Unveiled on 9 January 2024 at CES, the rabbit r1 was positioned as a distinct alternative to the smartphone. It launched at a price point of US$199 with no mandatory monthly subscription.8

Specifications

The r1 is a bright orange, square handheld device with the following technical specifications:

• Dimensions: 78 × 78 × 13 mm
• Weight: 115 g
• Display: 2.88-inch touchscreen
• Processor: MediaTek Helio P35
• Memory: 4 GB RAM
• Storage: 128 GB
• Battery: 1,000 mAh
• Connectivity: USB-C, Wi-Fi, Bluetooth, 4G LTE (unlocked Nano SIM)
• Camera: 8 MP rotating camera (branded as rabbit eye)9
• Physical controls: Push-to-talk button, scroll wheel

Industrial design

The hardware was developed in collaboration with Swedish design firm Teenage Engineering, resulting in a distinctive retro-futuristic aesthetic inspired by devices such as the Tamagotchi and Pokédex.10 This design strategy was intentional; the device was created to function as a dedicated computing companion rather than a miniature smartphone.

The industrial design has received significant recognition, including an iF Design Award 2025 and two Red Dot “Best of the Best” awards.9

rabbitOS

The r1 operates on rabbitOS, which was originally conceived as an “app-free” experience. Instead of presenting a grid of application icons, the operating system interprets natural language requests and utilises AI agents to interact with online services. In this architecture, the AI serves as the interface between the user and third-party applications.12

Large Action Model (LAM)

The Large Action Model (LAM) is the foundational technology distinguishing rabbit from large language model (LLM) providers. While LLMs are designed to understand and generate language, LAMs are engineered to understand intention, determine necessary actions, and interact with software interfaces. This theoretically enables the agent to operate services using existing graphical interfaces without requiring bespoke API integrations for each platform.13

Teach Mode

Introduced in beta in November 2024, Teach Mode allows users to create custom agents by demonstrating workflows to the device. Users can show the agent how to perform a specific task, after which the agent learns the workflow for future execution. This feature shifts the platform from a pre-programmed assistant towards a customisable agent creation tool.11

rabbitOS 2 and Creations

Released in September 2025, rabbitOS 2 overhauled the system with a card-based interface, enhanced touch interactions, improved AI functionality, and offline recording capabilities.3 A key addition was Creations, which enables users to describe desired outcomes and have the r1 generate interactive tools, games, or mini-applications, effectively transforming the device into an AI-generated software platform.14

rabbit intern

Launched in June 2025, rabbit intern is a general-purpose AI agent capable of producing substantial digital outputs, including websites, research reports, presentations, and market analysis. Unlike a conversational assistant, intern functions as a virtual team member designed to execute multi-step projects independently.4

DLAM and computer control

In January 2026, rabbit introduced DLAM, a plug-and-play controller that allows the r1 to operate Windows or Mac computers via natural language commands. This positions the r1 not as a computer replacement, but as a physical natural-language interface for desktop computing.5

Third-party agent integration

As of 2026, the r1 supports integration with external AI agents, including Hermes Agent, Claude Code, and OpenClaw. Users are responsible for configuring these third-party systems, reflecting a strategic shift towards positioning the r1 as a physical interface for a broader agent ecosystem rather than a closed proprietary system.5

rabbit maintains a significant partnership with Teenage Engineering. Beyond collaborating on the r1’s industrial design, Teenage Engineering founder Jesper Kouthoofd was appointed as rabbit’s Chief Design Officer in April 2024, whilst retaining his role at his own firm.6 This relationship underpins the brand’s tactile, colourful, and unconventional design philosophy.

Founder and CEO Jesse Lyu is a two-time Y Combinator alumnus whose previous venture, Raven Tech, was acquired by Baidu. His core philosophy—that computers should understand human intentions rather than forcing users to learn machine interfaces—forms the intellectual foundation of rabbit.15

rabbit raised US$20 million in October 2023 and an additional US$10 million in December 2023. Investors include Khosla Ventures, Synergis Capital, Kakao Investment, and Sound Ventures. By late 2024, the company reported total funding exceeding US$59 million.16 Additional funding was announced in January 2026, though consolidated figures were not disclosed in that update.5

The r1 generated significant market interest, with rabbit reporting sales of over 100,000 units by August 2024.17 Reception was polarised; the device was praised for its industrial design, price point, and novelty, but criticised for early software limitations, latency, and reliability issues relative to smartphone AI assistants. rabbit acknowledged the gap between initial expectations and performance, citing it as the impetus for the development of rabbitOS 2.3

Given the agent’s ability to interact with user accounts, security is a primary architectural consideration. rabbit states that it does not store third-party service credentials, with authentication handled directly by the respective services.18 Physical privacy mechanisms include a push-to-talk activation button and a rotating camera that rests in a lens-blocking position. The company also conducts third-party security testing and maintains a vulnerability disclosure programme.19

rabbit versus ChatGPT

Whilst ChatGPT functions primarily as a general-purpose conversational and reasoning assistant, rabbit focuses on agentic action and task execution. However, the distinction has narrowed as conversational AI platforms increasingly incorporate tool-use capabilities and rabbit integrates external agents.

rabbit versus Humane

rabbit is frequently compared to Humane, another startup that launched dedicated AI hardware in 2024. Whilst both challenged smartphone-centric computing, Humane pursued a wearable form factor intended to replace the phone, whereas rabbit opted for a handheld device centred on a physical interface. Commercially, Humane ceased its consumer hardware business, whilst rabbit continued to expand its software and agent platform.

As of 2026, rabbit’s strategy has evolved from selling standalone AI hardware to building an AI-native computing and agent ecosystem. The current product suite includes rabbitOS, the r1, LAM technology, Teach Mode, Creations, DLAM, third-party agent integrations, and rabbit intern. Company materials indicate active development on a next-generation hardware project, although full details remain undisclosed.20

1. introducing r1, a pocket companion that moves AI from words to action
2. rabbit inc. raises $20M to build a natural language-powered personalized operating system
3. rabbit overhauls r1 experience with rabbitOS 2
4. rabbit officially launches its second product – rabbit intern
5. First major update of 2026 — DLAM, OpenClaw, and a surprise
6. jesper and jesse will work together again!
7. rabbit inc. raises additional $10M to launch first AI hardware to replace app-based operating systems
8. rabbit support – What is rabbit r1?
9. rabbit r1 receives prestigious iF Design Award 2025
10. rabbit – newsroom
11. Teach mode is here: rabbit gives consumers power to create custom AI agents
12. rabbit r1 – your AI assistant device
13. rabbit r1, the consumer AI-native pocket companion, expands availability across the UK and European Union
14. rabbit r1 | rabbit intern | rabbitOS | official site
15. Rabbit R1 | AI Wiki
16. updates: rabbit r1 evolution & changelog
17. rabbit r1 – user guide
18. Rabbit Founder Wants Redemption With a Cyberdeck for Vibe Coding
19. Exclusive: Inside the Rise of Jesse Lyu and the Rabbit R1
20. Rabbit R1 AI Assistant: Price, Specs, Release Date | WIRED