Open source voice assistant software-maker Mycroft disappointed thousands when it announced Friday it will not be sending its Linux-based smart speaker to any more people who backed the product on Kickstarter and Indiegogo. Remaining inventory of the privacy-focused Amazon Echo alternative will go to those who buy the Mark II from Mycroft's website for 171 percent more than early backers pledged.

Mycroft says its open source software can run on anything, from a computer to a car to a Raspberry Pi. The company promotes flexible customization for user and business needs and says it doesn't collect data unless a user opts in. Opt-in data is published publicly for open source development. The technically savvy could also customize Mycroft to their will and use it to run their own server or work offline, and the software shows potential for broader use cases, like Linux phones. Open source voice assistants like Mycroft have won the attention of smart home enthusiasts, but their complexity has prevented them from becoming mainstream solutions over Big-Tech voice assistants packaged into neat hardware.

That's what made Mycroft's Mark II seem like a good idea; and while privacy-first, open source smart hardware still is, Mycroft has upset a lot of its early supporters.

The Mark II open source smart speaker

Mycroft started development of its Mark II consumer smart speaker in 2018 after successfully crowdfunding the launch of its own company via Kickstarter and Indiegogo in 2015 and the Raspberry Pi 3-based Mark 1 prototype for makers in 2017. According to Mycroft, 1,500 backers received a Mark 1, but as is often the case, the sequel was far less impressive.

The Mark II's crowdfunding pages on Kickstarter and Indiegogo push the Mark II as "The Open Voice Assistant," with a heightened focus on privacy over the likes of Amazon and Google. The device uses a custom version of Pantavisor Linux with an Ubuntu-based Mycroft container as its operating system and Mycroft's own Voice Assistant Core as its software, according to the product page on Mycroft's website. Other specs include a Cortex A72 quad-core, Arm-based processor (up to 1.5 GHz), 2GB of LPDDR4-3200 SDRAM, two speakers, two mics, a 5MP camera, and a 4.3-inch IPS touchscreen.

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The campaign raised $603,785 via 2,981 backers, according to the Mark II's Indiegogo page. As noted by Liliputing, CEO Michael Lewis claimed 52 backers had received Mark II orders by December, but Mycroft hasn't disclosed how many more backers in total have a unit. Considering more than 2,000 people backed the product, though, it's safe to say there are a lot of pledgers with empty hands.

In updates posted to the Mark II's crowdfunding pages, Lewis said:

We will still be shipping all orders that are made through the Mycroft website because these sales directly cover the costs of producing and shipping the products. However we do not have the funds to continue fulfilling rewards from this crowdfunding campaign or to even continue meaningful operations.

The announcement follows Lewis' January 31 blog post detailing layoffs that resulted in the company consisting of only Lewis, two developers, a customer service agent, and a lawyer. Lewis' blog also said Mycroft would "have to cease development" by the end of January but claimed that Mark II manufacturing and shipping were unaffected. That post also claimed that Mark devices would not be bricked.

"We’ve been diligently pursuing options to ensure that all devices shipped to date and in the future will continue to operate and that our customers’ privacy will continue to be protected," Lewis wrote in the blog. "The first measure we’ve taken is to ensure that even if we must shut down our servers at some point in the future, all Mark IIs will continue to operate. Our efforts to push everything to the 'edge' and to improve our privacy policies have made this possible..."

Rising costs for Mycroft and its shoppers

Now, Mycroft is selling its remaining 103 (as of writing) Mark II devices on its website only. Backers can opt to pay to get the device from the website for $349 instead of the $499 MSRP with a coupon code. But that's still 171 percent more than the $129 pledge price.

Lewis' message shared what killed Mycroft and its hardware. The CEO took over after Joshua Montgomery, one of Mycroft's founders who launched the crowdfunding campaigns and, thus, is listed as the recent update's author despite leaving the company in May (his departure might have been an early red flag).

The trouble apparently started when Mycroft broke up with its hardware partner because it was "unable to make that hardware stable," and had to resell already-purchased components, according to Lewis. Mycroft started making the Mark II's hardware itself with "off-the-shelf components."