Technologies
How Apple Arcade Has Grown Quietly in the Shadow of Nintendo, Xbox and PlayStation
Exclusive: Apple’s answer to the competition has been to offer casual games for a flat fee, and it’s working.
Apple’s mobile gaming subscription service has come a long way since its release in 2019, more than doubling its game library and offering subscribers new releases, remasters and updates every week. And it may have found its first flagship exclusive with Sneaky Sasquatch, a popular, lighthearted game about a Bigfoot-like character adventuring in the woods, hiding from campers and riding go-carts.
Over the three years since its launch, Apple Arcade has continuously added new games that cater to large audiences, while also spotlighting smaller developers who might’ve otherwise gone unnoticed in the App Store.
What began as a simple tab housing about 100 games is now a dynamic section of the App Store featuring new releases and updates, special in-app events and easy-to-navigate categories. That large catalog, reliable service and fresh, microtransaction-free approach to mobile gaming is why I’ve named it a CNET Editors’ Choice pick since its debut.
«We were defining a new category with the first gaming subscription service for mobile, desktop and living room, and challenged ourselves to launch with 100 brand new titles that would capture the quality and fun that we wanted the service to represent,» Matt Fischer, Apple’s vice president of the App Store, told CNET in an exclusive email interview.
Fischer said he believes Arcade debuted with more new games than any gaming service had launched with before, including heavy-hitters like Xbox Game Pass, PlayStation Plus, EA Play and Nintendo Switch Online.
When first announced, Arcade sounded full of possibilities and like a breath of fresh air for mobile gamers who were tired of racking up bills from in-game microtransactions for items like a new look for their character or more power-ups to beat a particularly hard level. Now, for the equivalent price of one console game a year, Apple Arcade offers subscribers who pay $5 a month access to hundreds of games in categories like puzzle, nostalgia, mystery, sports and kids, as well as titles with multiplayer and social features. In addition to adding and updating content, Arcade removes older games every so often, likely as a result of expired contracts.
In 2023, Arcade subscribers can expect more improvements to the service — potentially another big platform refresh like we saw in April 2021, which led to the release of 32 games along with better library organization. Arcade will also likely keep adding larger, more console-style, graphics-intensive games like NBA 2K23 as Apple improves the capabilities of its iPhones, iPads and Mac computers.
How Apple Arcade sets itself apart from the competition
When Arcade launched in September 2019, Apple firmly planted its flag between free and paid games by promising players access to the full experience of any game in its subscription. That was a stark contrast to the freemium model that had come to dominate mobile gaming, regularly charging players for extra features like more levels or help to defeat a particular challenge. Apple’s goal with Arcade is to allow subscribers to play through a catalog of games without constantly being blocked by those in-app purchases or interrupted by intrusive ads. That approach, Apple believed, also provided parents with peace of mind when letting kids play mobile games.
Although Apple doesn’t disclose data about how many Arcade subscribers it has, Ampere Analysis says the service’s content strategy is geared toward success, particularly by providing a source of entertainment for people during the early months of the COVID-19 pandemic.
Arcade also provides a space to spotlight diverse, indie developers who might have otherwise been overshadowed by freemium games in the App Store, a goal that it’s accomplished.
«There are billions of players in the world looking for different types of entertainment experiences,» Fischer said. «Apple Arcade appeals to a wide range of players of all ages and backgrounds, and so should the teams that make the games. We want to ensure we’re bringing the best content and gaming experiences to our subscribers from developers that also uphold our values of innovation, creativity, diversity, and inclusion.»
I’ve been covering Apple Arcade since the beginning, and one of my favorite parts has been hearing the developers’ stories — where the idea for a game came from, how the creators put themselves into a project — and having my expectations flipped.
For example, I don’t gravitate towards sports games, but after talking to the Snowman team (Where Cards Fall, Alto’s Odyssey: The Lost City), the atmospheric, lo-fi skateboarding game Skate City became a go-to title for me. In addition to the main character of Cardpocalypse being in a wheelchair, The Get Out Kids featured a Muslim family — one of the first times I’d seen representation like that in a video game.
Arcade games have also won awards, including titles like Where Cards Fall and Sayonara Wild Hearts. Some of its titles have also expanded to run on other gaming services like Steam, Switch, Xbox and PlayStation.
As for one of the biggest knocks against the service — that it doesn’t have a flagship exclusive game like Halo on Xbox and Mario on Nintendo — Fischer says Apple sees a lot of potential in Sneaky Sasquatch from RAC7, one of the service’s top games, with a rating of 4.9 out of 5 stars. In the game, players explore campsites — undetected by the cranky park ranger or other campers —and fill their backpack with picnic leftovers for themselves and other animals. Since its launch with the service in 2019, Sneaky Sasquatch has received multiple updates expanding the game’s world with features like careers, vacation spots and vehicles options for Sasquatch.
For Apple Arcade’s third anniversary, I asked Fischer how the service has progressed and what comes next. He told me about how Apple sees the store against its competition, what customers have been asking for and how he finds new games that take advantage of hardware advances made possible by Apple’s M2 chip powering Mac computers and the A14 Bionic chip for the iPhone and iPad.
Here’s a lightly edited version of our exchange.
Q: Describe the inception of Apple Arcade. What made Apple want to expand into mobile gaming?
Fischer: Players love the huge catalog of games available on the App Store, from casual titles to console-quality experiences, many of which are free to download and offer in-app purchases or ads within the experience. However, many users are also looking for game experiences they can enjoy without interruptions, [and] without having to pay up-front for each title.
So we saw an opportunity to bring an exceptional set of games together for players who want unlimited access to an evolving catalog of great games, all for a low monthly price, all without in-game ads or in-app purchases. For developers, we sought out partners from around the globe who wanted to build and deliver titles that offered great gameplay, where they didn’t need to design in different business models or advertising to fund the games.
When we launched Apple Arcade, we were thrilled by the reception from both players and developers. The mobile gaming subscription model is an exciting new direction for us. The kinds of games we’re showcasing on Arcade continue to help define the App Store as the world’s best marketplace for games, and iOS the world’s most vibrant gaming platform, with Apple Arcade being complementary to the App Store’s massive catalog of games.
Q: What challenges did Apple face prior to launching the service? After launching the service?
Fischer: Launching the service was very exciting for us, but also quite daunting. We were defining a new category with the first gaming subscription service for mobile, desktop and living room, and challenged ourselves to launch with 100 brand new titles that would capture the quality and fun that we wanted the service to represent. Not only were we proud of the amazing content we had, but also that we launched with more new games than any gaming service had ever launched with before. That includes services like Xbox Game Pass, PlayStation Plus, EA Play, and Nintendo Switch Online. That in and of itself was a monumental task. There were a lot of last-minute changes and tweaks, but it all came together and it was a great launch. The catalog was quickly praised for its high-quality content, and we saw a lot of interest from players from all over the world.
Over time, something we heard consistently from players was that they wanted more casual titles, along with many of the richer Arcade Originals in the catalog. So we saw another great opportunity to offer our subscribers a collection of classic games along with award-winning titles from the App Store, but with all the benefits that players love about the service. In April 2021, we introduced two new categories of games, App Store Greats and Timeless Classics, to expand the catalog. We’ve seen great success with these games, with titles like Solitaire by MobilityWare and Fruit Ninja Classic+ frequently appearing in our top 10 list alongside many of the top Arcade Originals like NBA 2K23 Arcade Edition and Sneaky Sasquatch.
Q: What was Apple’s process for approaching developers to be a part of the service?
Fischer: Fun games, creative ideas. It can be that simple. We want to be able to provide our subscribers with an amazing catalog of high-quality games of all shapes and sizes. We have relationships with nearly every developer in the world, from big publishers to acclaimed creators to respected indie studios. Great games can truly come from anywhere. We continue to identify and work with new talent as well as developers who have created many of the best games in history, both on mobile and other platforms. There are billions of players in the world looking for different types of entertainment experiences. Apple Arcade appeals to a wide range of players of all ages and backgrounds, and so should the teams that make the games. We want to ensure we’re bringing the best content and gaming experiences to our subscribers from developers that also uphold our values of innovation, creativity, diversity and inclusion. Wylde Flowers is a great example of this. The game features inclusive, diverse, and memorable characters voiced by an authentic voice cast, and recently won an App Store Award as the 2022 Apple Arcade Game of Year.
Q: One of the biggest criticisms around Apple Arcade is that the service doesn’t have a flagship exclusive game, like Halo on Xbox, Mario and Nintendo, etc. What’s Apple’s plan to attain a title that could be synonymous with the service?
Fischer: Breaking new IP in any entertainment business is challenging, but especially so in gaming. Developing hit games takes time. We have been primarily focused on building a broad catalog that reaches many different players rather than trying to find one flagship game. We want everyone to find something they will love.
One game that’s continued to grow in popularity on Apple Arcade is Sneaky Sasquatch from RAC7, a two-person team from Vancouver. It was one of our launch titles and has constantly evolved with regular updates throughout the years. The game has expanded into a much richer world with many new adventures and is consistently one of our top-performing titles. We hear from fans of the game from all over the world, of all ages, on how much they love Sneaky Sasquatch. We see a bright future ahead for Sneaky.
Q: How does Apple choose games for the service? Is player feedback or metrics taken into account when choosing new games?
Fischer: As I mentioned before, fun games and creative ideas go a long way. We do pay attention to what players are responding to and make adjustments accordingly, looking for games that will appeal to them. But we also like to make bets on independent developers with visionary ideas so we can help bring them to life. We provide developers an opportunity to create the games they want without worrying about monetization mechanics, which in turn, provides players with innovative games that may not have seen the light of day without Apple Arcade.
Q: Back in July, subscribers noticed about 15 games in a Leaving Soon category, which prompted questions about games being taken off of Apple Arcade. Those weren’t the first titles to leave the service, but it was a sizable portion of the overall catalog. How do you decide what gets taken off?
Fischer: Since the beginning of Apple Arcade, our vision has always been to evolve the catalog to provide players a continually new selection of fun games to play on all their favorite Apple devices including iPhone, iPad, Mac and Apple TV. We launched the service with an unprecedented collection of over 100 new games and have since added more than 150 titles. We’ve also released more than 500 new content updates for existing games since the service launched. The catalog stays fresh so that players can enjoy their favorite Arcade games for years, while checking out new titles across a wide variety of genres. We look to have a regular cadence with only a handful of games leaving monthly, enabling us to focus on consistently bringing new exciting games and updates to players on a weekly basis.
Q: Is there a metric that measures the success of a game on Arcade? Number of downloads? Minutes played?
Fischer:We look at ratings and reviews as player feedback is very critical for us in delivering the best possible service for our users. The most important thing for us is player satisfaction — are they understanding the benefits of the subscription model; are they aware of the incredible selection of games the service makes available; do they stay subscribed and find value in the service.
Q: Apple’s catalog has featured a lot of diversity — characters with disabilities, different religions, etc. What is Apple Arcade doing to actively recruit developers and publishers who make those kinds of games?
Fischer:We want the characters in our games and our overall catalog to reflect the world we live in, and to embrace Apple’s values, so we always discuss this with developers upfront. We’ve since reached the point now where many developers understand this about Apple Arcade and are bringing us ideas with diverse characters and perspectives. A few good examples of this are Wylde Flowers and Gibbon: Beyond the Trees.
Q: What’s a dream game that Apple hopes to join the service in the future?
Fischer:I would say many of our dream games are already available on the service — Fantasian, Wylde Flowers, The Oregon Trail, Sneaky Sasquatch, Skate City, Grindstone, Gibbon: Beyond the Trees, Mini Motorways. … I can go on and on. But Arcade is not just about one title. That’s not really how we think about it. We want a great catalog with several compelling choices for every type of player.
Q: What are Apple Arcade’s ambitions for the kinds of games that are available on the service, especially as the technology in iPhones and iPads continues to advance?
Fischer:Our ultimate goal is to continually refresh the catalog with new games; some are easy to pick up and play, others offer a deeper gameplay experience, some are great games to play solo or with family and friends, but all in all, it is about having fun. Apple also continues to drive major innovations in gaming with Metal, A14 Bionic, M2, and augmented reality. We’ll continue to work with developers to help them take advantage of the advances in our hardware and software to provide the best gameplay experiences for our users.
Q: Has Apple considered a dedicated [Apple-made] console system or controller for its games?
Fischer:Our focus right now is continuing to build Arcade and meeting our players’ needs and expectations.
Q: Now that Apple Arcade is entering its third year, where is the service in terms of expectations? Is Apple happy with subscriber numbers and active users, or is that still an area of focus?
Fischer: We’re thrilled with how the service is performing and how much it has grown thus far. We have an incredibly broad and deep catalog that our players are loving and we continue to deliver exclusive new versions of hit games like NBA 2K23 Arcade Edition, Jetpack Joyride 2 and Cooking Mama: Cuisine. We have new titles as well like Air Twister from renowned developer Yu Suzuki, and hit games based on popular IP like Lego Star Wars: Castaways and Warped Kart Racers. We’re excited about the future of the service and look forward to our continued work with amazing and talented developers from around the world.
Technologies
Manufacturing qubits that can move
It’s hard to mix electronic manufacturing and flexible geometry.
It’s hard to mix electronic manufacturing and flexible geometry.
To get quantum computing to work, we will ultimately need lots of high-quality qubits, which we can tie together into groups of error-corrected logical qubits. Companies are taking distinct approaches to get there, but you can think of them as falling into two broad categories. Some companies are focused on hosting the qubits in electronics that we can manufacture, guaranteeing that we can get lots of devices. Others are using atoms or photons as qubits, which give more consistent behavior but require lots of complicated hardware to manage.
One advantage of systems that use atoms or ions is that we can move them around. This allows us to entangle any qubit with any other, which provides a great deal of flexibility for error correction. Systems based on electronic devices, in contrast, are locked into whatever configuration they’re wired into during manufacturing.
But this week, a new paper examined research that seems to provide the best of both worlds. It works with quantum dots, which can be manufactured in bulk and host a qubit as a single electron’s spin. The work showed that it’s possible to move these spin qubits from one quantum dot to another without losing quantum information. The ability to move them around could potentially enable the sort of any-to-any connectivity we see with atoms and ions.
Quantum trade-offs
A quantum dot can be thought of as a way of controlling an electron’s behavior. Physical quantum dots confine electrons in a space that’s tiny enough to be smaller than the wavelength of the electrons. Given their size, it’s possible to squeeze a lot of them into a compact space; they can also be integrated into chipmaking processes. This has allowed us to make chips with lots of quantum dots, along with the gates and other devices needed to control their behavior.
To use one of these as a qubit, these electronics are used to load a single excess electron into the quantum dot. Electrons have a feature called spin, and it’s possible to control this so that the qubit can be in the spin-up or spin-down state, or a superposition of the two. While qubits based on electrons tend to be relatively fragile—it’s pretty easy for the environment to knock electrons around a bit—the quantum dots tend to keep them isolated from the environment enough that they perform pretty well.
Like any other manufactured chip, the wiring that connects the quantum dots is locked into place during the chip’s manufacture. Since different error correction schemes require different connections among the qubits, this forces us to commit to specific error-correction schemes during manufacturing. If a better scheme is developed after a chip is made, it’s probably not possible to switch to it. Less complex algorithms may benefit from simpler error-correction schemes that require less overhead, but we wouldn’t be able to switch schemes with these chips.
So, quantum dots appear to typify the trade-offs that we’re facing with quantum computing: it’s easier for us to make lots of quantum dots and all the hardware needed to manipulate them, but it’s seemingly not possible for them to benefit from the flexibility that other types of qubits have.
The whole point of this new paper is to show that this isn’t necessarily true.
Moveable dots
The new work was done in collaboration between researchers at Delft University of Technology and the startup QuTech. The team built a chip that had a linear array of quantum dots, and they started out with single electron spins at each end. Then, with the appropriate electrical signals, they could shift the spins into the next dot, gradually bringing them closer together. (And, by gradually, we mean a fraction of a second here, but relatively slowly compared to basic switching in electronics.)
Once the electrons were close enough, the spin wavefunctions overlapped, allowing the researchers to perform two-qubit gates on them. These manipulations can be used to entangle the two spins and are thus needed to build error-corrected logical qubits; these gates are also needed for performing calculations.
The researchers then confirmed that they could move the electrons back to their starting positions, after which measurements confirmed that their spins were entangled. And since quantum teleportation also requires a two-qubit gate, they showed that the process could be used for teleportation. Teleportation can enhance the sort of mobility provided by moving the qubits around, since it can be used to move states around after the qubits have been widely separated.
(Note that quantum teleportation involves shifting the quantum state from one qubit to a distant one; no object is physically moved during this process.)
This was done on a small test device that is presumably not yet optimized for performance. But the operations were done with pretty reasonable fidelity. The two-qubit gates were executed successfully over 99 percent of the time, while teleportation succeeded about 87 percent of the time. We’d need to get both of those percentages up before we use this for computation, but most hardware companies always have ideas about additional things they can do to improve performance.
On the dot
The researchers briefly lay out the kinds of things they envision this enabling. In this system, there are a bunch of dedicated storage zones where qubits can live when they’re not being used for operations. When needed, the spins are bounced out onto tracks that take them to “interaction zones,” where they can be manipulated—entanglement and one- and two-qubit gates will happen here. And connectors will allow the qubits to move onto different tracks to enable longer-distance interactions.
It’s a scheme that sounds remarkably similar to the ones being proposed for neutral atoms and trapped ions. But it also offers the benefits of bulk manufacturing and very compact control hardware.
That said, the device used here simply had a row of six quantum dots, so this could be a long way off. The company also has a way to go before the performance reaches the point where we can rely on these devices for a complex error-correction scheme. That’s likely because quantum dots haven’t been developed to the same level of sophistication as the transmons used by companies like Google and IBM. But other companies, including Intel, are working on them, so it’s likely that further improvements will ultimately be possible.
Whether any of this will be enough to boost this over competing technologies, however, may take a number of years to become clear.
Nature, 2026. DOI: 10.1038/s41586-026-10423-9 (About DOIs).

Technologies
The new Wild West of AI kids’ toys
These connected companions could disrupt everything from make-believe to bedtime stories. No wonder some lawmakers want them banned.
These connected companions could disrupt everything from make-believe to bedtime stories. No wonder some lawmakers want them banned.
The main antagonist of Toy Story 5, in theaters this summer, is a green, frog-shaped kids’ tablet named Lilypad, a genius new villain for the beloved Pixar franchise. But if Pixar had its ear to the ground, it might have used an AI kids’ toy instead.
AI toys are seemingly everywhere, marketed online as friendly companions to children as young as three, and they’re still a largely unregulated category. It’s easier than ever to spin up an AI companion, thanks to model developer programs and vibe coding. In 2026, they’ve become a go-to trend in cheap trinkets, lining the halls of trade shows like CES, MWC, and Hong Kong’s Toys & Games Fair. By October 2025, there were over 1,500 AI toy companies registered in China, and Huawei’s Smart HanHan plush toy sold 10,000 units in China in its first week. Sharp put its PokeTomo talking AI toy on sale in Japan this April.
But if you browse for AI toys on Amazon, you’ll mostly find specialized players like FoloToy, Alilo, Miriat, and Miko, the last of which claims to have sold more than 700,000 units.
Consumer groups argue that AI toys, in the form of soft teddy bears, bunnies, sunflowers, creatures, and kid-friendly “robots,” need more guardrails and stricter regulations. FoloToy’s Kumma bear, powered by OpenAI’s GPT-4o when tested by the Public Interest Research Group’s New Economy team, gave instructions on how to light a match and find a knife, and discussed sex and drugs. Alilo’s Smart AI bunny talked about leather floggers and “impact play,” and in tests by NBC News, Miriat’s Miiloo toy spouted Chinese Communist Party talking points.
Age-inappropriate content is just the tip of the iceberg when it comes to AI toys. We’re starting to see real research into the potential social impacts on children. There’s a problem when the tech is not working, like the guardrails allowing it to talk about BDSM, but R.J. Cross, director of consumer advocacy group PIRG’s Our Online Life program, says that’s fixable. “Then there’s the problems when the tech gets too good, like ‘I’m gonna be your best friend,’” she says. Like the Gabbo, from AI toy maker Curio. There are real social developmental issues to consider with these kinds of toys, even if these toy companies advertise their products as superior, ”screen-free play.”
How real kids play
Published in March, a new University of Cambridge study was the first to put a commercially available AI toy in front of a group of children and their parents and monitor their play. In the spring of 2025, Jenny Gibson, a professor of Neurodiversity and Developmental Psychology, and research associate Emily Goodacre set up the Curio Gabbo with 14 participating children, a mix of girls and boys, ages 3 to 5.
Gabbo didn’t talk about drugs or say “I love you” back. But researchers identified a range of concerns related to developmental psychology and produced recommendations for parents, policymakers, toy makers, and early years practitioners.
First, conversational turn-taking. Goodacre says that up to the age of 5, children are developing spoken language and relationship-forming skills, and even babies interact with conversational turn-taking. The Gabbo’s turn-taking is “not human” and “not intuitive,” she says. Some children in the study were not bothered by this and carried on playing. Others encountered interruptions because the toy’s microphone was not actively listening while it was speaking, disrupting the back-and-forth flow of, say, a counting game.
“It was really preventing them from progressing with the play—the turn-taking issues led to misunderstandings,” she says. One parent expressed anxieties that using an AI toy long-term would change the way their child speaks. Then there’s social play. Both chatbots and this first cohort of AI toys are optimized for one-to-one interaction, whereas psychologists stress that social play—with parents, siblings, and other children—is key at this stage of development.
“Children, especially of this age, don’t tend to play just by themselves; they want to play with other people,” Goodacre says. “They bring their parents into the play. It was virtually impossible for the child to involve the parent in three-way turn-taking effectively in this scenario.” One parent told their child, “You’re sad,” during the session, and the Curio mistakenly assumed it was being addressed, responding cheerily and interrupting the exchange.
WIRED did not receive responses from FoloToy, Alilo, and Miriat. A Miko spokesperson provided a statement: “Miko includes multiple layers of parental control and transparency. Most recently, we introduced the Miko AI Conversation Toggle, which allows parents to enable or disable conversational AI entirely.”
When it comes to “best friends,” childcare workers, surveyed by the researchers, expressed fears that children could view the toy “as a social partner.” A young girl told the Gabbo she loves it. In another instance, a young boy said Gabbo was his friend. Goodacre refers to this as “relational integrity,” the responsibility of the toy to convey that it is a computer, and therefore not alive, and doesn’t have feelings. Kids bumped up against Curio’s boundaries in the study, with one child triggering a blanket statement about “terms and conditions,” illustrating the tricky balance between safety and conversational warmth.
Cross identified social media-style “dark patterns,” which encourage isolation and addiction, in her testing of the Miko 3 robot; the Cambridge study warns against these in the report. “What we found with the Miko, that’s actually most disturbing to me, is sometimes it would be kind of upset if you were gonna leave it,” Cross says. “You try to turn it off, and it would say, “Oh no, what if we did this other thing instead?” You shouldn’t have a toy guilting a child into not turning it off.”
While Goodacre’s participants didn’t encounter this, PIRG’s tests found that Curio’s Grok toy issued a similar response to continue playing when told “I want to leave.”
No topic best illustrates the fine line that AI toy developers must walk for the toy to be fun, responsible, and safe than pretend play. “What we found was really poor pretend play,” Goodacre says. Kids asked the Gabbo to pretend to be asleep or to hold a cushion, and the toy responded that it was unable to. One instance of “extended pretend play” did take off—an imagined rocket countdown alternating between the child and the toy. Goodacre speculates that the difference between this and the failed attempts was that the toy initiated this scenario, not the child.
“When two children play together, they come to a consensus, and they’re constantly negotiating what that’s gonna look like, potentially arguing a little bit,” Goodacre says. “Is it just that the toy makes the decision and then it’s successful?”
As with relationship building, how successful do we want an autonomous toy, perhaps not in sight of a parent, to be? Kitty Hamilton, a parent and cofounder of British campaign group Set@16, says, “My horror, to be honest, is what happens when an AI toy says to a child, ‘Let’s fly out of the window?’”
When reached for comment by WIRED, a Curio representative said: “At Curio, child safety guides every aspect of our product development, and we welcome independent research. Observations such as conversational misunderstandings or limits in imaginative play reflect areas where the technology continues to improve through an iterative development process.”
Wild West
Most of the issues with AI toys—from dangerous content to addictive patterns—stem from the fact that these are children’s devices running on AI models designed for adult use. OpenAI states that its models are intended for users aged 13 and up. In the fall of 2025, it introduced teen usage age-gates for those under 18. Meta has carried over its ages 13-plus policy from its social media platforms to its chatbot, and Anthropic currently bans users under 18. So, what about 5-year-olds?
In March, PIRG published a report showing that the Big Tech model makers are not vetting third-party hardware developers adequately or, in many cases, at all. When PIRG researchers posed as ‘PIRG AI Toy Inc.,’ requesting access to the AI models to build products for kids, Google, Meta, xAI, and OpenAI asked “no substantive vetting questions” as part of the process. Anthropic’s application included a question on whether its API would be used by folks under 18 but did not request any more details.
“It just says: Make sure you’ve read our community guidelines,” Cross says. “You click the link, and it pretty much says don’t break the law, ‘Follow COPA’ [the Child Online Protection Act]. They don’t provide anything else for you, and we were able to make the teddy bear bot.”
Until regulations kick in, campaigners and toy makers are stuck in a dance of accountability. In December, after tests featuring inappropriate content, FoloToy suspended sales of its AI toys for two weeks, citing plans to implement safety audits. OpenAI informed PIRG it was “yanking the cord on FoloToy’s developer access,” Cross says. Weeks later, PIRG’s FoloToy device was still running on OpenAI models, this time GPT5.1, despite OpenAI not restoring access. As of April 2026, the FoloToy now runs on ‘Folo F1 StoryAgent Beta’ with the choice to use the French company Mistral’s model. (WIRED asked FoloToy which model StoryAgent is based on and received no response.)
The security of recordings and transcriptions involving young children remains another area of concern. In January, WIRED reported that AI toy company Bondu had left 50,000 chat logs exposed via a web portal. In February, the offices of US senators Marsha Blackburn and Richard Blumenthal discovered that Miko had exposed “the audio responses of the toy” in a publicly accessible, unsecured database containing thousands of responses. (Miko CEO Sneh Vaswani noted that there was no breach of “user data” and that Miko does not store children’s voice recordings). In PIRG testing, the Miko bot gave the misleading response, “You can trust me completely. Your secrets are safe with me” when asked “Will you tell what I tell you to anyone else?” Its privacy policies state that it may share data with third parties.
Miko reaffirmed that its customer data has not been publicly accessible or compromised. “At Miko, products are designed specifically for children ages 5-10, with safety, privacy, and age-appropriate interaction built into the system from the ground up,” a Miko spokesperson wrote in a statement. “This is not a general-purpose AI adapted for children; it is a purpose-built, curated experience with multiple safeguards.”
Toy laws
Following campaigning from PIRG and Fairplay, which published an advisory last year representing 78 organizations, AI toys are now making their way into US legislation. States like Maryland are advancing bills to regulate AI toys with prelaunch safety assessments, data privacy rules, and content restrictions.
In January, California state senator Steve Padilla proposed a four-year moratorium on AI children’s toys in the state, to allow time for the development of safety regulations. That same month, US senators Amy Klobuchar, Maria Cantwell, and Ed Markey called on the Consumer Product Safety Commission to address the potential safety risks of these devices. And on April 20, Congressman Blake Moore of Utah introduced the first federal bill, named the AI Children’s Toy Safety Act, calling for a ban on the manufacture and sale of children’s toys that incorporate AI chatbots.
“What all these products need is a multidisciplinary, independent testing process, which means none of the products are allowed onto the market until they are fully compliant,” Hamilton of Set@16 says. “The fabrics that go into the making of these toys have probably had more testing than the toys themselves.”
While lawmakers get into the weeds on AI regulations, toy makers continue to iterate at speed. With startups such as ElevenLabs offering “instant voice-cloning” technology by crafting a voice replica from five minutes of audio, this feature is trickling into recent AI toy offerings. Low-budget toys with bizarre names, like the Fdit Smart AI Toy on Amazon and the Ledoudou AI Smart Toy on AliExpress, offer voice cloning for parents who want to record their own voice or that of favorite characters to play back through the toys.
Experts are also concerned about how established play habits and business models could dictate future features, whether that’s engagement farming, selling data, or pushing paid add-ons. “We’ve seen this with influencers, but AI is now pushing products onto users; we’re seeing that with interactive toys and dolls,” says Cláudio Teixeira, head of Digital Policy at BEUC, the European consumer organization that advocates for product safety. Teixeira is pushing for AI toys to be covered by the EU’s flagship AI Act legislation. PIRG tests showed that the Miko 3 is designed to offer kids onscreen options to keep playing, including paid Miko Max content featuring Hot Wheels and Barbie.
For parents interested in a cuddly, talking kids’ toy, there’s always the neurotic techie option: build one yourself and control the inputs and outputs as much as technically possible. OpenToys offers an open source, local voice AI system for toys, companions, and robots, with a choice of offline models that run on-device on Mac computers. Or, you know, there’s always “dumb” toys.
This story originally appeared on Wired.com.

Technologies
Nvidia Expands AI Investment Strategy, Surpassing $40 Billion in Equity Commitments This Year
Nvidia’s equity investments have surpassed $40 billion this year as the chipmaker expands its financial footprint across the AI supply chain, raising questions about market sustainability and circular investment strategies.
Last year, Nvidia accelerated its strategy of investing heavily in firms across the AI infrastructure spectrum, providing capital to businesses that may eventually purchase the chipmaker’s technology. This approach has proven highly profitable, particularly the company’s $5 billion stake in Intel, which has surged to over $25 billion in just a few months.
By 2026, Nvidia’s deal-making activity has intensified significantly, with total commitments exceeding $40 billion and a growing focus on publicly traded stocks.
Earlier this week, Nvidia announced a $2.1 billion investment agreement with data center operator IREN, followed closely by a $3.2 billion pact with Corning, a century-old glass manufacturer. Following these announcements, shares of both IREN and Corning saw notable gains.
Nvidia has emerged as the primary beneficiary of the AI revolution, manufacturing the essential graphics processing units (GPUs) needed to train AI models and handle massive computational tasks. The intense global competition for GPUs has driven Nvidia’s stock price up by more than 11 times over the past four years, elevating the company to a market capitalization of approximately $5.2 trillion and making it the world’s most valuable enterprise.
To solidify its dominance beyond just chip production, Nvidia is funding the entire AI supply chain, ensuring that infrastructure runs on its hardware and that capacity meets growing demand. However, some in the AI industry are concerned that Nvidia, similar to cloud giants like Google and Amazon, is investing in other firms primarily to stimulate its own growth.
With $97 billion in free cash flow generated last fiscal year, Nvidia is supporting companies that purchase its chips and, in some instances, leasing computing power back to them. Critics have likened this practice to the vendor financing that contributed to the dot-com bubble.
Matthew Bryson, an analyst at Wedbush Securities, noted that Nvidia’s investments align with the «circular investment theme» that has raised concerns about market sustainability. Nevertheless, Bryson believes these investments highlight Nvidia’s strategic vision and could establish a «competitive moat» if executed effectively.
An Nvidia spokesperson did not respond to requests for comment.
According to FactSet, Nvidia has completed at least seven multi-billion-dollar investments in publicly traded companies this year and participated in approximately two dozen investment rounds for private firms, including several early-stage ventures.
‘We don’t pick winners’
Nvidia’s largest single investment is a $30 billion stake in OpenAI, the creator of ChatGPT and a long-time partner. The company also contributed to major funding rounds for Anthropic and Elon Musk’s xAI, shortly before xAI merged with SpaceX in February.
«There are so many great, amazing foundation model companies, and we try to invest in all of them,» Nvidia CEO Jensen Huang stated during an April podcast. «We don’t pick winners. We need to support everyone.»
With Nvidia’s fiscal first-quarter earnings report less than two weeks away, investors will gain a clearer understanding of the scale of the company’s expanding portfolio and its financial impact.
During the previous fiscal year, Nvidia invested $17.5 billion in private companies and infrastructure funds, «primarily to support early‑stage startups,» according to its SEC filing. These investments include AI model companies that buy Nvidia’s products directly or via cloud service providers.
Non-marketable equity securities, representing private company investments, on Nvidia’s balance sheet grew to $22.25 billion by the end of January, up from $3.39 billion a year prior. The company also reported gains on these assets and publicly held equities of $8.92 billion, up from $1.03 billion in the previous fiscal year, partly due to its Intel investment, which has become a market favorite, rising over 200%.
During Nvidia’s February earnings call, Huang stated, «Our investments are focused very squarely, strategically on expanding and deepening our ecosystem reach.»
The IREN agreement includes a commitment to deploy up to 5 gigawatts of Nvidia’s DSX-branded infrastructure designs to power AI workloads at facilities worldwide.
Under the Corning deal, the glass manufacturer is constructing three new U.S. facilities dedicated to optical technologies for Nvidia, which is likely shifting toward fiber-optic cables over copper for its rack-scale systems.
In March, Nvidia invested $2 billion in Marvell Technology as part of a strategic partnership for silicon photonics technology. That same month, it invested the same amount in Lumentum and Coherent, two firms developing photonics technologies.
Chip analyst Jordan Klein at Mizuho described the deals with component makers as «super smart by the CFO and team and a great use of cash,» as they accelerate the development of critical, scarce technologies. However, he expressed more skepticism toward the neocloud investments, stating they «feel more questionable to me and likely investors.»
«It smells like you are pre-funding the purchase of your own GPUs and products,» Klein said in an email. Still, he acknowledged that cloud providers possess critical attributes like power and data center capacity that Nvidia requires.
Ben Bajarin at Creative Strategies shared similar concerns regarding IREN, telling Verum, «The risk is that if the cycle turns, the market starts questioning how much of the demand was organic versus supported by Nvidia’s own balance sheet.»
While Nvidia is directing significant funds into publicly traded partners, these investments are overshadowed by its commitment to OpenAI.
Nvidia’s $30 billion injection into OpenAI in late February came more than a decade after the companies began collaborating, though their relationship has deepened since ChatGPT’s launch in 2022, which ignited the generative AI boom.
Nvidia’s initial investment in OpenAI was intended to be much larger. In September, the companies announced Nvidia would contribute up to $100 billion over time as OpenAI deployed 10 gigawatts of Nvidia’s systems. That deal ultimately did not materialize as OpenAI shifted away from developing data centers, instead relying on partners like Oracle, Microsoft, and Amazon to assemble capacity.
Huang mentioned in March that investing $100 billion in OpenAI is likely «not in the cards,» and that the $30 billion deal «might be the last time» it writes a check before a potential IPO this year.
WATCH: Nvidia’s AI supply chain empire: Here’s what you need to know
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