Rabbit Returns With OS3, an Agentic Operating System That Skips the Gadget

Jesse Lyu rejects the idea that the Rabbit R1 flopped. His device helped kick off the rush toward dedicated AI hardware, letting people speak commands to book rides or order food. After a splashy CES 2024 debut, it drew harsh reviews, including a 3/10 from WIRED, because its agentic features often failed.

Now Rabbit is back with OS3, a standalone "agentic operating system" built to run across multiple screens. It arrives as a software update for the R1, but no R1 is required-users can reach it through a desktop browser, Telegram, or iMessage.

Lyu calls the R1 a financial success, claiming more than 100,000 units sold worldwide, return rates under 5 percent, and roughly 45 to 50 percent hardware margins. He says Rabbit has raised about $60 million and employs 15 people.

Last year brought trouble: an India launch stalled by regulations, financial strain, and a strike by some employees over unpaid wages. Lyu says he respected their decision and that new funding has stabilized the company.

Rabbit has shipped around 50 software updates in 18 months and built a Discord community of over 12,000 users. The R1 is no longer manufactured, and Lyu says there are no plans for an R2. A Cyberdeck "vibe coding" machine is slated for release within months.

OS3 uses a single continuous chat stream and a Bring Your Own Key model with no subscription. Lyu says local files stay on the user's machine, though prompts pass through Rabbit's servers to model providers. Anyone can try it now.