Product1 publisher3 min readPublished
Rabbit's OS3 reaches users through a browser tab, Telegram or iMessage
Jesse Lyu says Rabbit delivered more than 100,000 R1s and has stopped making them. The agent layer now opens on hardware customers already own, and the sites it needs to act on are starting to block agents.
The Product Desk · Product desk

What happened
- Rabbit announced OS3 on Tuesday, an agentic operating system it says can be reached from a desktop browser, from Telegram on a phone or from iMessage, with the R1 gadget optional.
- The company has stopped manufacturing the R1 and its remaining stock is dwindling, though owners who keep theirs can use the device as an input and output gadget for OS3.
- Meta's new Muse agent was banned from crawling Amazon to shop on a user's behalf using a virtual machine, the same technique that drew criticism of the R1.
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Why it matters
- constraint With the hardware purchase out of the path, the limit on what OS3 finishes sits at the destination site, and a retailer that refuses agent traffic ends the task whichever screen it started on.
- decision Evaluating an agent no longer requires buying a device for the pilot, so the comparison between vendors collapses onto whether tasks complete at the specific sites your own users need.
- exposure Rabbit charges nothing for the AI features and says it runs on 15 people, so anyone standardising a workflow on OS3 is betting on a cloud bill funded by a hardware line that is out of production.
- precedent If a node on the user's own machine keeps working where rented virtual machines get blocked, the next wave of agent products ships as browser and chat installs, testable on the hardware a buyer already has.
OS3 runs in the cloud and reaches a user's desktop software, files and web pages through a local agent node, per Wired's description of the platform [3]. A node on the user's own machine issues its requests from that machine's network and session. A rented virtual machine in a data center does not, and Amazon banned Meta's Muse agent from crawling it to shop on a user's behalf using exactly that setup [11]. Rabbit hit this first: the R1 used a virtual machine to take actions inside apps for people, which was contentious at the time [24]. "We've been through all of this a year and a half ago," Lyu said [10].
Trying the agent now starts on hardware the user already owns [2]. The tasks Rabbit sold from the start were speaking a request and having it book an Uber or order food on DoorDash [23], and those are decided by whoever runs the destination.
Almost every number on the record is Lyu's own. He claims more than 100,000 R1s delivered, returns under 5 percent and hardware margin of roughly 45 to 50 percent [6], and says Rabbit has raised around $60 million and employs 15 people [8]. Wired's own contribution is the 3/10 it gave the R1 after its CES 2024 launch [12]. The interview does not report usage, retention or task-completion figures for the agent features [22]; the only current demand figure Lyu gave was four or five orders through Rabbit's website on the morning of the interview, which he said excludes Amazon, Target and Best Buy [19]. Around 50 updates over the past year and a half [15] works out to roughly one every eleven days [20].
A 12,000-member Discord [16] is what a team points at when asked who is still using the thing. Against the 100,000 units Lyu claims, it is at most about 12 percent of buyers [21], and its members are the ones who wanted to run OpenClaw or Hermes on the R1 in place of Rabbit's own models [17]. "We're more open; the device is yours, you decide what to do with the device," Lyu said [18].
Rabbit is still in the hardware business. It has stopped making the R1 and ruled out an R2, and says its next device, due within months, is a Cyberdeck for vibe coding that runs OS3 [4][5]. Last year was harder: regulations stymied a planned launch in India, and a handful of employees went on strike saying they were not being paid, after which Lyu says the company secured more funding [13]. "There are no issues with the company's health," he said [14].
For anyone choosing an agent to put in front of users on Monday, two things sort the options: where the agent executes, on the user's own machine or on a server the vendor rents, and whether the destination site permits agent traffic at all. Three of the four combinations answer themselves. The interesting one is a local node at a site that blocks agents, where the outcome turns on how well that site can separate a person from software acting under that person's login. I would take the local-node option and price what comes with it: installation, operating-system permission prompts and breakage become your support queue's problem.
What to watch
- Whether the Cyberdeck ships inside the "months" Lyu described, and what it costs to run OS3 for free.
- Whether Amazon, Uber or DoorDash extend agent blocking from data-center virtual machines to agents running on a customer's own machine.
- Whether Rabbit holds the no-subscription line once OS3's cloud load comes from people who never bought an R1.