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When Teddy Bears Talk Back: The Rise of AI Plushies
AI-powered plushies promise screen-free play but raise new questions about privacy, parenting, and the meaning of imagination.

By Indrani Priyadarshini

on August 19, 2025

A Redwood City–based startup, Curio, is reimagining childhood play with a twist of artificial intelligence. Founded by Misha Sallee and Sam Eaton, the company has launched three plush companions — Grem, Grok, and Gaboo. Each toy hides a Wi-Fi–enabled voice box that connects to an AI language model designed to engage children in conversation. Priced at $99, these stuffed animals bring a whole new dimension to the toy aisle.

A Growing Trend in AI-Powered Play

Curio’s creations are part of a broader movement as AI seeps into children’s products. Just recently, OpenAI teamed up with Mattel to develop AI-enhanced toys tied to brands like Barbie and Ken. Supporters argue these innovations offer parents an alternative to screens, while critics warn they may blur the line between play and technology.

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Is it an alternative to screen time, or just another version of it?

Co-founder Sam Eaton describes the plushies as a “sidekick” for children, one that makes play more engaging without relying on tablets or television. For busy parents, the pitch is appealing. Yet, New York Times writer Amanda Hess challenged this premise, pointing out that while kids have always given voices to their toys, the AI layer adds a curious new complexity. During a demo, she recalls a surreal exchange where the toy suggested playing “I Spy” despite having no eyes of its own. The irony, she notes, is that these so-called screen alternatives run on the same foundations of digital technology.

From TV Sidekicks to Talking Plushies

The idea of mechanical friends is hardly new for today’s children. Popular shows like Adventure Time and Sesame Street feature characters such as BMO and Smartie — personified devices that support their human friends. Disney’s Mickey Mouse Clubhouse even has Toodles, a sentient tablet that solves every problem with a quick command. Hess argues this conditioning leads children to believe that every challenge has a voice-activated answer, narrowing curiosity to whatever a device can provide.

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The Privacy Question Wrapped in Fur

Beyond play, these AI toys raise sharp questions about privacy. Curio assures parents that all conversations between the child and the plushie are transcribed and sent to the guardian’s phone. The company maintains that chats aren’t stored for other uses, although its privacy policy outlines pathways through which data could be passed to third-party partners, such as OpenAI and Perplexity AI. This raises concerns about whether a child’s most trusted toy — often a source of comfort and secrets — should also serve as a surveillance tool.

The Most Magical Toys May Be the Simplest

In her critique, Hess describes removing the voice box from the toy and returning it to its original form: a simple, silent stuffed animal. Her children, left to their own imaginations, immediately invented new adventures without AI assistance. For her, this reinforced a timeless truth — that the most magical toys may not be powered by algorithms, but by the boundless creativity of children themselves.