AI robot company closure leaves kids bereft

Occurred: December 2024

The closure of Embodied, the company behind the AI-powered Moxie robot, has left children emotionally distressed as they bid farewell to their robotic companions, prompting concerns about the company's business model and the psychological impacts of its product.  

What happened

Designed to help children develop social skills, Moxie is an AI-powered robot aimed at teaching social and emotional skills to children, particularly those on the autism spectrum. The robot cost around USD 800.

Embodied announced its shutdown due to financial difficulties and a failed funding round, leading to the firm's discontinuation of its product. 

Parents are now faced with the task of explaining this loss to their children, who formed close attachments to Moxie as a friend and learning tool.

Why it happened

Embodied's closure was due to financial instability, exacerbated by a funding round that failed to materialise. 

What it means

The shutdown has significant implications for children and their families, representing not just a financial loss but also an emotional and psychological one, as children mourn the loss of their robotic companions.

The incident serves as a cautionary tale about the risks associated with AI products designed for children, emphasising the need for sustainable business models and ethical considerations when developing and running technology aimed at young and vulnerable users.

System 🤖

Operator: 
Developer: Embodied
Country: Global
Sector: Consumer goods
Purpose: Develop social skills
Technology: Generative AI; Robotics; Machine learning
Issue: Addiction; Business model

Page info
Type: Issue
Published: January 2025