Embodied, the company behind Moxie, an AI-powered robot for kids, is shutting down, leaving parents with a $799 robot that will soon stop functioning.

The company cited financial struggles and a failed funding round as reasons for its closure and stated that no refunds will be issued.

Moxie, designed for children ages 5 to 10, offered interactive games, emotional support, and conversation, but its reliance on a cloud-based AI system means it will cease to work once the company shuts down.

The shutdown is particularly impactful as many children had formed emotional bonds with the robot, creating an added sense of loss, Axios has reported.

This highlights the challenges of the consumer hardware business, especially for startups, as other AI hardware projects also face difficulties.

Written by B.C. Begley