Rabbit Launches OS3, a Cloud-Based AI Agent That Runs Without the R1 Device

Rabbit is decoupling its AI agent from the hardware that made it famous. The startup behind the widely panned R1 device is rolling out OS3, an "agentic operating system" that runs in the cloud but operates locally across Windows, Mac, and Linux computers—no R1 required.

The news was first reported by Wired.

How OS3 Works

According to Rabbit, users can link up to five devices to a single account, along with their preferred AI models. OS3 automatically determines which devices, files, apps, and AI models it needs to complete a given task, distributing work across a user's connected hardware.

Access isn't limited to a desktop client. Rabbit says OS3 can also be reached through a dedicated desktop website, paired messaging apps like Telegram and iMessage, and—for those who still own one—the original R1 device.

R1 Production Has Stopped

Rabbit founder Jesse Lyu told Wired that the company has stopped manufacturing the R1, the standalone AI gadget that launched in 2024 to significant hype and subsequently harsh reviews over sluggish performance and limited functionality. Lyu says Rabbit isn't abandoning hardware entirely, however. The company is developing a new "vibe-coding" device, described as a "cyberdeck," that will run OS3 when it ships within "months," according to Wired.

Data Handling Claims

Rabbit claims OS3 will not store, copy, use, or sell user data. The company notes an exception: chats and the memories generated from them will still be retained on Rabbit's servers. Any third-party AI models or providers connected through OS3 will handle user data according to their own separate privacy policies—meaning Rabbit's no-data-sale pledge doesn't necessarily extend to every model a user chooses to plug in.

Pricing for OS3 has not yet been disclosed, and Rabbit has not specified which third-party AI models are compatible with the platform at launch.

What this means

Rabbit's pivot away from dedicated hardware is a tacit admission that the R1's value was never really the device—it was the software layer trying to orchestrate AI tasks across a user's digital life. By making OS3 hardware-agnostic, Rabbit can chase a much larger addressable market of existing Windows, Mac, and Linux users rather than betting on selling more standalone gadgets that didn't sell well the first time.

The move also puts Rabbit in more direct competition with a growing field of desktop AI agents and orchestration layers from larger players, none of which carry the baggage of a rocky hardware launch. Whether OS3 can differentiate itself on capability alone, without a novel physical form factor to generate press, is the real test. The claimed data protections also deserve scrutiny given the carve-out for third-party model providers—users connecting their own AI models will inherit whatever privacy practices those providers maintain.