AI Company That Built Robots for Children Shuts Down, Leaving Moxie “Lifeless”
Embodied, the company behind the AI-powered social robot Moxie, has announced its closure due to financial struggles and an abrupt loss of funding. The news leaves Moxie owners in a difficult position, as the robot, designed to assist children with autism and other social challenges, will soon become non-functional.
Moxie, a cheerful, blue robot with a Pixar-like design, sold for $799. The device relied on cloud-based large language models (LLMs) to provide interactive conversations and educational support. However, the shutdown of Embodied means Moxie’s cloud-dependent features will cease to work, rendering the robot essentially inoperative.
This type of outcome is not unprecedented. A similar scenario occurred with Vector, another cloud-dependent robot, when its parent company collapsed. However, Moxie’s case feels more jarring since it’s a relatively new and expensive product still being marketed until recently. 
In a FAQ emailed to customers and shared on its website, Embodied informed users that Moxie’s functionality would end within days. The company stated it could not offer refunds, repairs, or service support. For those who purchased the robot via payment plans, Embodied admitted that these payments remain outside its control. With no plans for a successor to take over operations, customers are left without options to maintain the device.
The shutdown has elicited strong emotional reactions from Moxie owners, particularly parents of children who had grown attached to the robot. Many parents now face the heartbreaking task of explaining to their children why their robotic companion is effectively “dying.” To assist, Embodied provided a prewritten letter from the fictional Global Robotics Lab to help parents frame the conversation in an age-appropriate way.
Social Media Reactions
Videos have surfaced on social media platforms like TikTok, showing children and adults tearfully asking Moxie about its fate. For many, it feels akin to losing a close friend. There’s some speculation that third parties might acquire Moxie’s technology or that the devices could be hacked for offline use, but neither scenario guarantees relief.
The situation also raises broader ethical and practical concerns about relying on AI-powered devices for social and educational development, especially for neurodivergent children. Critics argue that teaching language and social skills through LLMs is problematic, as these systems lack human understanding and emotional depth.
Moreover, the collapse of Embodied highlights a critical flaw in the AI-driven tech industry. Running LLMs is expensive, and the push to commercialize AI without sustainable business models leaves users stranded when companies fail. As the AI bubble continues to grow, questions loom about the long-term consequences for those who form deep emotional bonds with their AI devices.
For now, the demise of Moxie serves as a stark reminder of the risks involved in adopting cloud-dependent robotics and the human cost of over-reliance on unsustainable AI technologies.
