The startup Humane, which developed the AI Pin, is in discussions with HP and telecoms to sell its product.

• The AI hardware startup founded by ex-Apple designers, Humane, is currently in talks with HP and other companies, including more than one telecom company, after its AI Pin's lukewarm debut, a source familiar with the matter told CNBC.
• The device, worn on the lapel, was marketed by the startup as a replacement for a smartphone, enabling users to perform various tasks such as making calls, sending texts, and conducting searches through voice control.
• In April, the AI Pin sent by Humane to reviewers was met with a lukewarm response, with several people expressing doubts about its reliability and usefulness.

The AI hardware startup founded by ex-designers, Humane, is currently seeking a buyer after its AI Pin's lukewarm debut. The company is in talks with several firms, including more than one telecom company, a source familiar with the matter told CNBC.

An investment bank, Tidal Partners, has been hired by Humane to advise on a potential deal, according to a source.

The AI Pin, a lapel-worn artificial intelligence device, is marketed by the startup as a replacement for a smartphone. Users can make calls, send texts, conduct searches, and perform other tasks through voice control. The device costs $699 and requires a $24 monthly data subscription.

In April, when Humane sent the AI Pin to gadget reviewers, it was not well received, with many calling it untrustworthy and not very useful. For example, reviewers said it was "more science project than finished product," "totally broken," and a "party trick" at best.

The New York Times first reported on the talks with HP.

In April, a source close to the company revealed to CNBC that Humane was not as far ahead as it had originally hoped, but it's common for hardware startups to miss their launch targets. The source stated that Humane was probably six months behind schedule, which was not unexpected for a new venture.

In 2020, Humane secured $100 million in funding from LG's venture arm and Tiger Global, bringing its total funding to over $200 million. Notable backers include OpenAI CEO Sam Altman and CEO Marc Benioff.