The company is working with a financial adviser to assist it, said the people, who asked not to be identified because the matter is private.

Humane is seeking a price of between US$750 million and US$1 billion in a sale, one person said. The process is still early and may not result in a deal.

Representatives for Humane didn’t respond to requests for comment.

Humane was founded in 2018 by two longtime Apple Inc veterans, the married couple Imran Chaudhri and Bethany Bongiorno, in an attempt to come up with a new, AI-powered device that could potentially rival the iPhone. Last year it was valued by investors at US$850 million, according to tech news site the Information.

The company has raised US$230 million to date from a roster of high-profile investors including OpenAI CEO Sam Altman.

The startup’s magnetic, square-shaped, laser-beaming, wearable pin attracted significant buzz prior to its launch. But the US$699 device was widely panned by critics for issues with its reliability and practicality.

The company has said it’s working to improve areas such as battery life, device overheating, accuracy and response time.

Humane’s potential sale comes at the same time that other competitors are also expanding AI-hardware efforts, such as the handheld Rabbit device as well as Meta Platforms Inc’s AI-powered Ray-Bans. But so far, none of the technology has become mainstream.