HP eyed as potential buyer for troubled Humane AI Pin business

After a rocky launch and scathing reviews, AI startup Humane is reportedly seeking a buyer for its wearable AI Pin, with tech giant HP emerging as a potential suitor.

The New York Times reports that Humane, founded by former Apple executives Imran Chaudhri and Bethany Bongiorno, has engaged in talks with HP for a potential acquisition deal exceeding $1 billion. This follows reports from both Bloomberg and The New York Times that the struggling company is seeking a buyer for between $750 million and $1 billion.

Humane's AI Pin, a $699 wearable device designed to offer AI-powered features through a laser projection system, has been widely panned by critics since its launch. Reviewers criticised the device for failing to live up to its promises, highlighting issues with battery life, functionality, and overheating. The company also faced backlash after emailing customers about potential fire safety risks associated with the device's charging case.

Adding to the turmoil, The Times reports that Humane fired a senior software engineer in February for questioning the AI Pin's readiness for launch, allegedly violating a company policy prohibiting employees from speaking negatively about Humane. Several current and former employees have described a company culture that prioritised "positivity over criticism," alleging that Chaudhri and Bongiorno disregarded concerns regarding the device's technical limitations.

Despite aiming to sell 100,000 units in its first year, Humane had only received around 10,000 orders for the AI Pin as of early April, according to The Times.

Whether HP, known for its previous acquisition of Palm and subsequent discontinuation of the brand, will ultimately acquire Humane remains uncertain. The potential deal evokes a sense of déjà vu, raising questions about the future of Humane's technology and employees should HP choose to integrate or abandon the AI Pin.