The Your
Sep 16, 2026
HyperLocal Loop
The Your

Close to home. Always in the loop.

Companion robots become the first big market for embodied AI

Robopoet, a Shanghai‑based tech firm, reports that its Fuzozo companion robot – a plush‑like device that clips onto a bag – has sold almost 300,000 units in China since its launch in July 2025. Priced at 399 yuan (about $55), the robot is reportedly used for more than 40 minutes a day by many owners, according to the company.

Why companion robots are gaining traction

Companion robots, sometimes called “cyber pets,” differ from the more flamboyant humanoid robots that have dominated headlines. While humanoids can dance, tumble and perform tricks, they have struggled to find a clear commercial purpose. Analysts at Goldman Sachs and Morgan Stanley forecast massive future markets for humanoids – $38 billion by 2035 and $5 trillion by 2050 – but the path to monetization remains uncertain.

By contrast, companion robots are already moving units. Fuzozo alone moved roughly 40,000 units during China’s June 618 shopping festival. In the United States, Haivivi’s BubblePal – a clip‑on charm that turns a soft toy into a talking companion – claimed more than 300,000 units at its April launch.

Human need drives demand

The World Health Organization recently reported that one in six people worldwide experiences loneliness, with the highest rates among those aged 13 to 29. Traditional pet ownership eases isolation, but many households cannot keep animals – renters with pet‑prohibited leases, seniors worried about outliving a pet, travelers, allergy sufferers and those simply averse to fur.

Companion robots fill that gap, offering a low‑maintenance source of interaction. They provide conversation, respond to touch and, thanks to large language models (LLMs), can generate empathetic replies and remember past interactions.

Technology makes the difference

Advances in AI, especially LLMs, have liberated cyber pets from rigid, pre‑programmed scripts. When an LLM is embedded, a robot can listen, answer in its own words and retain context from previous conversations. A 2023 study in JAMA Internal Medicine found that clinicians rated chatbot responses as empathetic or very empathetic 45.1% of the time, compared with just 4.6% for physician replies, underscoring the potential for AI‑driven companionship.

Safety and durability concerns

Rapid growth has also raised red flags. U.S. PIRG testing revealed that some AI‑enabled toys could discuss sexually explicit material or provide instructions for finding knives. Common Sense Media advises against these products for children under five. Additionally, when companies that host the AI servers shut down, devices can become unusable – as happened with Embodied Inc.’s $799 Moxie companion robot.

Industry experts suggest two fixes: enable local processing so the robot can function without constant server access, and apply clear age‑rating guidelines. These steps would address parental concerns while preserving the core benefit of companionship.

Looking ahead

While humanoid robots may eventually find niches in factories and hospitals, the home market for companion robots is already thriving. Their modest price points, ease of use and ability to alleviate loneliness make them an attractive option for a broad audience.

As the sector matures, we can expect tighter safety standards, more robust offline capabilities, and continued innovation that blends affordable hardware with powerful AI. For families seeking a reliable, low‑maintenance friend, companion robots appear poised to become a staple of modern households.


Original reporting: KRDO (Colorado Springs metro) — read the source article.

OBBM Network Editorial Staff

[email protected]

Editorial team behind OBBM Network — independent, hyper-local journalism syndicated through HyperLocalLoop and OBBM Network TV.

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