The Rabbit R1 launched at CES in 2024 to much fanfare — promising an AI-powered device that you could carry around with you to help get stuff done, whether it’s getting answers to questions and identifying objects or doing instant translations or helping you shop or book travel.

However, the wave of negative reviews has apparently left the company in such a financial state that it’s been unable to pay both employees and contractors for months.

Following an interview that Tom’s Guide conducted with Rabbit CEO Jesse Lyu, in which he said the company was planning to launch next-gen AI hardware in 2026, we received a number of tips alleging that Rabbit has failed to pay since late summer.

After investigating further, corroborating with other sources and verifying with evidence, Tom’s Guide

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