Nanoleaf's strategic shift is primarily driven by the increasing commoditization of smart lighting, according to CEO Gimmy Chu.
Nanoleaf's strategic pivot is largely attributed to the growing commoditization within the smart lighting market, as stated by CEO Gimmy Chu.
The smart lighting company Nanoleaf has maintained a notably low profile recently. In contrast to rivals like Govee and Philips Hue, which have rapidly introduced new products and innovative features, Nanoleaf has released only a limited number of smart lighting solutions over the past two years. This period of quietude stems from a deliberate "brand evolution" within the company, redirecting its focus towards wellness, robotics, and crucially, artificial intelligence.
Gimmy Chu, the forthright CEO and co-founder of Nanoleaf, now prefers that the company not be exclusively labeled as a smart lighting firm. He openly states, “The smart home is getting kind of boring,” explaining that “Our brand needs to evolve to incorporate some of the other products that we’re going to be releasing.”
“The smart home is getting kind of boring.”
Nanoleaf has built its reputation on its highly customizable and interactive RGB lighting ecosystem, featuring products such as modular lighting panels and software capable of synchronizing illumination with content displayed on computer or television screens. The company was an early proponent of Thread and Matter standards, with its smart bulb being among the inaugural Thread products compatible with Apple’s HomePod Mini upon its 2020 release.
However, Chu contends that open standards, specifically Matter, are accelerating the commoditization of smart lighting. He cites examples like IKEA, which now offers full-color smart lightbulbs for approximately $10 that are compatible across all major platforms. This trend, he notes, was anticipated by him and others when Matter was introduced almost four years ago.
Generative AI is identified by Chu as the imminent wave of innovation. For Nanoleaf, this translates into a strategic emphasis on 'embodied AI' – technology designed to exist within and interact with the physical world. Chu elaborates, “It’s putting intelligence into hardware that actually does something useful,” distinguishing it from merely integrating large language models into speakers. He underscores, “AI is a huge buzzword right now, but it’s a transformative technology that will change the way that everything works, including the products that we develop.”
While remaining discreet about precise details, Chu confirmed that at least three products centered on embodied AI are slated for release this year. Shared images suggest these innovations will include an AI-powered toy, a dedicated desk companion, and a robotic microcontroller.
A recent blog post on Nanoleaf’s website outlines the company’s vision for utilizing AI in “personalized and impactful” capacities to streamline daily life and foster creativity and learning. However, it refrains from providing concrete specifics on the actual implementation. Chu disclosed only that one upcoming product is geared towards early childhood development, adding that robotics are a significant, albeit long-term, component of the company’s future.
Another significant shift involves a foray into wellness products. Nanoleaf introduced a red light therapy mask in 2025, which Chu states has rapidly become one of their best-selling items. The company has since expanded this line with a red light therapy panel and wand, and plans to release four additional red light therapy devices for facial and body treatment this year. These new offerings, according to Chu, will “include heating, and massage/vibration settings.”
Similar to many segments of the wellness gadget market, consumer-grade red light therapy often navigates the space between established science and promotional hype. Nanoleaf’s distinct advantage in this area is its pricing strategy. Chu explains that the company has capitalized on its expertise in LED lighting and its supply chain efficiencies to offer these products at a more competitive price point compared to most alternatives available in the U.S. market.
Despite its diversification, Nanoleaf will maintain its commitment to smart lighting, Chu affirms. This sector still constitutes 80 to 90 percent of the business, with ongoing plans to introduce new form factors and updates. The company is set to showcase several new products at the IFA tech show in Berlin this fall. Chu states, “We’re rolling out support for Matter 1.4 shortly, and have another product that’s Matter 1.5, which we’re releasing this year,” emphasizing, “So, we’re not going to slow down.”
Chu explains that the most arduous work lay in developing the foundational technology, making the creation of new lamp form factors or bulb designs relatively straightforward now. He remarks, “A lot of the innovation behind home and gaming lighting was establishing the connectivity,” adding, “It was all the blood, sweat, and tears of getting Thread and Matter actually sorted out.” As an early adopter, Nanoleaf experienced significant challenges due to the delayed rollout of these standards. Now, Chu intends to redirect these extensive R&D efforts towards novel challenges.
Despite its evolving focus, Nanoleaf intends to remain a prominent smart lighting company.
A particular aspect of smart lighting that still excites Chu is enhancing its accessibility to AI. All Nanoleaf products feature open APIs, and Chu expresses a strong desire to eventually open-source the underlying code. He asserts, “That is the direction that technology is going. With our lighting products and with most smart home products, the more open that you can make it, the more compatible with AI it can be.” He envisions users customizing their lighting precisely to their needs, declaring, “That’s really the power of the internet of things.”
Chu’s palpable enthusiasm for emerging technologies is a characteristic trait of a tech company CEO. While hobbyists might find joy in developing new AI-driven controls for smart lights, Nanoleaf’s current customer base likely prioritizes continuous innovation within its existing ecosystem and the introduction of new features and functionalities to its application.
The smart home sector is currently undergoing a significant transformation, driven by advancements in AI and the maturation of Matter – a standard designed to facilitate interchangeability among connected devices. For companies such as Nanoleaf, this landscape underscores the paramount importance of differentiation. While the efficacy of developing AI companions and wellness gadgets as a primary strategy remains debatable, Nanoleaf is commendably demonstrating ambitious foresight.
Correction: As of May 8th, Gimmy Chu clarified that open standards such as Matter are contributing to the 'commoditization' of smart lighting, rather than its 'commodification,' as was previously reported in this article.
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