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AppleCare Plus vs. Phone Insurance: Which Is the Better Deal?

We do the math to see if Apple or your wireless carrier offers the best value.

Your phone is essential, and losing access to it — whether it gets lost, stolen or broken — feels like quickly getting cut off from the rest of the world. I learned this the hard way when I lost my phone while riding a roller coaster and the staff let me know the chances of it being recovered were slim to none. At the time, I had a cell phone insurance plan through my wireless carrier. That plan allowed me to pay a deductible fee to replace the phone, saving me hundreds of dollars compared with having to buy a brand-new device. 

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Now, there are several options for insurance to protect your device from damage or loss. On top of that, Apple makes it very easy to set up the Find My app for free, which should allow you to track your phone down in most situations including when it is turned off. That said, for slightly more money you can opt for either an AppleCare Plus plan or a phone insurance plan through your wireless carrier that covers theft or loss incidents too.

But what’s the main difference between these phone insurance plans, and which one will save you the most money? For CNET’s We Do the Math, we took a closer look at both kinds of programs, comparing AppleCare Plus to Verizon, T-Mobile and AT&T’s respective phone insurance plans to determine which one is best for you. 

While AppleCare Plus is typically the cheapest option, another may better fit your needs and save you more money in the long run. (For more We Do the Math, check out if streaming is really cheaper than cable, and if Xbox Game Pass costs less than buying the games.)

AppleCare vs. wireless carrier insurance plans (iPhone 14 prices)

Monthly/2-year cost Screen repair cost Accidental damage repair deductible Replacement deductible for theft and loss
AppleCare Plus $8/$149 $29 $99 $149
AppleCare Plus with Theft and Loss $11.49/$219 $29 $99 $149
Verizon Mobile Protect (Single Line) $17/$408 $29 ($0 after April 27) $229 ($99 after April 27) $229
AT&T Protect Advantage (Single Line) $17/$408 $29 $0 when repairing battery, $275 when replacing device $275
T-Mobile Protection 360 $18/$432 $29 $99 $249

And just a note: You should not sign up for both AppleCare Plus and your wireless carrier insurance. It can be easy to do so by accident. I was once erroneously signed up for T-Mobile’s Protection 360 plan for my Apple Watch SE when I added it as a new line to my account, resulting in a $13 charge that was initially placed on my bill. 

That extra charge was eventually refunded after making it clear to customer service that I never signed up for the service. As a precaution, keep an eye out for any similar mistakes when signing up for service at any wireless carrier.

In this article:

The Apple Store in Palo Alto, California seen at sunriseThe Apple Store in Palo Alto, California seen at sunrise

The Apple Store in Palo Alto, California.

James Martin/CNET

AppleCare Plus: When you want Apple to handle everything

When you buy an iPhone, AppleCare Plus will be heavily advertised as a protection option. You can sign up directly from your phone’s settings menu for 60 days after you purchase the device. 

The benefits of going with AppleCare Plus come down to whether you’d prefer to work with Apple over your carrier should anything happen to your iPhone. If you live near an Apple retail store, you can use that location or a provider authorized by Apple for local assistance. Otherwise, you’ll work with Apple’s customer support team to arrange mail-away repairs.

AppleCare Plus plans come in two varieties: A base plan that covers device repairs, and a slightly more expensive one that covers theft along with loss. The actual cost of your plan varies based on the type of iPhone you own and whether you decide to buy a two-year plan or go monthly.

Under the current AppleCare Plus with Theft and Loss plans, a monthly plan for an iPhone 14 Pro or an iPhone 14 Pro Max costs $13.49 per month, or $269 over two years. For an iPhone 14 Plus, you’ll pay $12.49 a month or $249 for two years. The base iPhone 14, iPhone 13, iPhone 13 Mini and iPhone 12 are $11.49 per month, or $219 for two years. And the cheapest is the iPhone SE at $7.49 per month and $149 for two years.

If you don’t need Theft and Loss coverage and are only interested in phone repairs, AppleCare Plus prices are slightly cheaper. The iPhone 14 Pro and Pro Max plans are $10 per month or $199 for two years. The iPhone 14 Plus is $9 per month or $179 for two years. The base iPhone 14, 13, 12 and 13 Mini are $8 per month or $149 for two years. And the iPhone SE comes in at $4 per month or $79 for two years.

Both types of AppleCare Plus plans cover unlimited repairs for accidental damage to the iPhone itself, the battery inside of the iPhone and the included USB-C to Lightning cable. You should note that a repair will still incur a service fee or deductible. These costs range from $29 for screen or back glass repairs to $99 for most other accidental damage incidents or $149 to replace a stolen device.

The plans also include customer support for iOS issues, including assistance using iOS, help connecting to Wi-Fi and questions about other Apple services like FaceTime.

AppleCare Plus is also included with the iPhone Upgrade Program, Apple’s monthly payment program that allows for yearly trade-ins toward the next year’s device. Under that program, you’ll either pay for your phone over the course of 24 months or make 12 payments to upgrade early. This begins at $39.50 per month for the iPhone 14 and costs as much as $74.91 per month for the iPhone 14 Pro Max with 1TB of storage.

The most obvious downside to relying on AppleCare Plus is that Apple’s plans focus solely on the phone itself, with limited access to supporting you through changes to your wireless service. If you would prefer to work with your wireless provider on all things pertaining to your device, carriers themselves also offer a series of insurance options that provide comparable coverage for repairs, theft and loss.

AppleCare Plus vs. AppleCare Plus with Theft and Loss

AppleCare Plus monthly/2-year prices AppleCare Plus with Theft and Loss monthly/2-year prices
Apple iPhone 14 Pro/Pro Max $10/$199 $13.49/$269
Apple iPhone 14 Plus $9/$179 $12.49/$249
Apple iPhone 12/13/13 Mini/14 $8/$149 $11.49/$219
Apple iPhone SE $4/$79 $7.49/$149

Phone insurance from your wireless provider

Verizon, T-Mobile and AT&T all offer phone insurance plans similar to AppleCare Plus — and sometimes will even process your repair through Apple. The wireless carriers also have multidevice insurance options, which allow you to bundle together coverage for other devices like a cellular-connected smartwatch or tablet.

Some carriers include additional benefits beyond just repair and replacement services. For instance, the program could include subscriptions to security software or a hardware upgrade option.

Broken screen corner on iPhone XS Max.Broken screen corner on iPhone XS Max.

Verizon’s Mobile Protect plans will include unlimited screen repair after April 27.

Angela Lang/CNET

Verizon Wireless protection plans are getting better in April

Verizon includes an extensive list of device insurance and phone protection plans, but its best offerings aren’t arriving until April 27. Starting at that date, the carrier will reduce or eliminate some of the service fees associated with device repair and add data recovery services (more on that below). Existing plans and prices will remain the same.

The sheer number of paths you can take for device protection at Verizon will vary. The most basic is the Wireless Phone Protection plan, which covers lost, stolen or damaged devices. The step-up Total Equipment Coverage plan includes extended warranty coverage. And the most expensive insurance packages are Verizon’s Mobile Protect plans, which can be purchased for a single device or in a multidevice bundle for three to 10 devices. 

The Mobile Protect plans include the carrier’s Mobile Secure apps for services like identity theft monitoring and blocking robocalls. Also included is access to Verizon’s Tech Coach support team, meant for help with device setup, optimization and ongoing support.

The monthly rates are roughly the same across most recent iPhone models, starting at $7.25 per month for Wireless Phone Protection. This goes up to $11.40 per month for the Total Equipment Coverage plan, $17 per month for Verizon Mobile Protect Single Device and $50 per month for Verizon Mobile Protect Multi-Device. For the latter, each additional line after the first three devices will cost another $11.40.

Deductibles however vary between models, with the iPhone SE costing $129 per incident and the iPhone 14 Pro Max reaching $249 per incident. Both deductibles are substantially cheaper than buying a new phone, but they are still fairly expensive. Starting April 27, Verizon’s Mobile Protect plan is reducing deductibles to $99 and removing the screen repair deductible. The cheaper Wireless Phone Protection plan will continue to offer higher deductible prices for loss and theft after April 27. But that plan will also offer the $99 deductible for damage, along with including cracked screen repair for no additional cost.

If you have a particular habit of breaking your screen regularly, Verizon’s plans could be appealing after April 27 when that service is essentially made free. The multidevice plans are also notable since they include coverage for smartwatches and tablets in addition to phones. However, if your primary concern is device recovery after accidental damage beyond a cracked screen or a theft, the AppleCare Plus plans appear to be cheaper on both the monthly fee price and the deductible price.

AppleCare Plus vs. AppleCare Plus with Theft and Loss vs. Verizon Mobile protect single device (iPhone 14 prices)

Monthly/2-year cost Screen repair cost Accidental damage repair deductible Replacement deductible for theft and loss
AppleCare Plus $8/$149 $29 $99 $149
AppleCare Plus with Theft and Loss $11.49/$219 $29 $99 $149
Verizon Mobile Protect (Single Line) $17/$408 $29 ($0 after April 27) $229 ($99 after April 27) $229

AT&T Protect Advantage plans 

AT&T offers device insurance through its Protect Advantage plans, which include perks alongside device repairs and replacements. The carrier offers Protect Advantage as either a single-device plan or a multiple-device plan, with the former pricing at $14 or $17 per month depending on your device. The multiple-device plan supports up to four phones, tablets, smartwatches or connected laptops at $45 per month.

For each eligible device, the carrier will do repairs or replacements relating to the device itself, the battery, the charger and the SIM card. Services include next-day delivery and setup for replacement devices, unlimited screen repairs at $29 per occurrence, unlimited battery replacement and unlimited out-of-warranty malfunction claims. Battery replacements do not have an additional cost. Each approved repair claim will come with a service fee or replacement deductible, ranging from $25 to $275 depending on the device and if a replacement is necessary.

AT&T’s plans also include services that are being offered by Asurion Tech Repair and Solutions and uBreakiFix stores, promising that subscribers can use in-store services like device cleaning, data recovery and performance optimization. In-person support for data recovery and performance could be useful for those who don’t consider themselves tech-savvy, but I put less stock into the device sanitizing service. You can easily do that yourself with cleaning wipes or a microfiber cloth.

The Protect Advantage plans also include unlimited photo and video storage, which could be an alternative to subscribing to a different cloud service (though your photos would be stored with AT&T). 

All four models in the iPhone 14 series standing on a deskAll four models in the iPhone 14 series standing on a desk

From left to right: iPhone 14 Pro Max, iPhone 14 Pro, iPhone 14 Plus and iPhone 14.

Celso Bulgatti/CNET

New York state residents get the option to purchase AT&T’s Protect Advantage services individually. For instance, a subscriber in that state could choose between device insurance starting at $2.25 per month, an extended service contract starting at $6 per month or the in-store ProTech services starting at $6 per month. This could be particularly useful for a New York-based subscriber who does not expect to ever handle these replacements by visiting a physical store, since you can choose to opt out of that ProTech cost.

Another wrinkle to AT&T’s Protect Advantage plans is that they work similarly to signing up for health insurance: You can enroll either within 30 days of activating a new device or during an open enrollment period — one’s currently running until March 15. After March 15, you’ll have to wait until the next open enrollment to register. An AT&T rep said the enrollment periods take place sporadically, with no set schedule.

Like Verizon’s Mobile Protect Plans, AT&T’s options could be useful for people who want their device insurance to encompass a wide variety of devices under the same plan. However, some of the perks offered might not be of immediate use or interest, which is worth considering if deciding between AT&T’s offering or an AppleCare Plus plan.

AppleCare Plus vs. AppleCare Plus with Theft and Loss vs. AT&T Protect Advantage single device (iPhone 14 prices)

Monthly/2-year cost Screen repair cost Accidental damage repair deductible Replacement deductible for theft and loss
AppleCare Plus $8/$149 $29 $99 $149
AppleCare Plus with Theft and Loss $11.49/$219 $29 $99 $149
AT&T Protect Advantage (Single Line) $17/$408 $29 $0 when repairing battery, $275 when replacing device $275

T-Mobile Protection 360 and Basic Device Protection

T-Mobile offers two phone insurance plans that cover the device itself. The Basic Device Protection plan is exclusively focused on repairing a damaged phone or replacing it in the event of theft, while the Protection 360 plan throws in early device upgrades along with some security software. That latter Protection 360 plan even includes AppleCare Plus for two years, which might be an option if you like the idea of getting support from both your carrier and Apple.

The Basic Device Protection plan is available across the US except in New York state and provides coverage in the event of hardware failure, accidental damage and theft. However, the plan’s terms do not cover cosmetic damage like scratches and dents or damage caused by «normal wear and tear.» This is notable, as screen repair isn’t listed as a guaranteed benefit for this plan.

T-Mobile’s Protection 360 wraps together T-Mobile’s Jump program — where you can trade in an enrolled device for a new one after either 12 months of device payments or paying half of a device’s cost — alongside repair services provided by AppleCare Plus for two years. If AppleCare isn’t part of the repair, Protection 360 will provide device repairs handled through Assurant or replacements by T-Mobile.

Deductibles under Protection 360 are similar to Verizon and AT&T’s offerings. When calculated using an iPhone 14 Pro Max, there’s no charge for hardware service repairs such as defects or a battery holding less than 80% of its charge capacity. But there is a $5 processing fee if you exchange a device through T-Mobile. Most accidental and damage incidents will have a $99 deductible, while screen repair incidents will have a $29 deductible. A replacement will cost $249.

Basic Device Protection costs $14 per month when calculated on the iPhone 14 and iPhone 14 Pro Max. Like with AT&T, customers in New York have the option to purchase the individual benefits offered within Protection 360, which include the option to get device insurance only at a similar price.

Protection 360’s monthly pricing is between $7 and $25 per month, depending on your device. These prices can be found when buying a device on T-Mobile’s website and is $18 per month for the iPhone 14. 

AppleCare Plus vs. AppleCare Plus with Theft and Loss vs. T-Mobile Protection 360 single device (iPhone 14 prices)

Monthly/2-year cost Screen repair cost Accidental damage repair deductible Replacement deductible for theft and loss
AppleCare Plus $8/$149 $29 $99 $149
AppleCare Plus with Theft and Loss $11.49/$219 $29 $99 $149
T-Mobile Protection 360 $18/$432 $29 $99 $249

AppleCare Plus is cheaper, but make sure it works for you

In nearly every price comparison, AppleCare Plus is the cheaper device protection plan, primarily due to the lower monthly rates in comparison to the carriers. However, when it comes to deductible costs per incident, most of the carriers match AppleCare Plus prices. This includes the $99 deductible for accidental damage and $29 for screen repair. Device replacement deductibles, however, cost more at the carriers compared to AppleCare Plus, with Verizon’s $229 per incident coming closest to Apple’s $149.

If you already subscribe to Verizon and are prone to breaking your screen, the carrier’s $0 screen repair policy is an appealing bonus. But the $17 per month cost of Verizon’s plan is higher than the $13.49 per month cost of AppleCare Plus with Theft and Loss for an iPhone 14 Pro Max.

While Verizon and AT&T’s device insurance plans are bundled with services, it’s unclear whether those perks are actually useful. In particular, AT&T’s bundled performance optimization and device sanitization services can be easily duplicated with a couple of quick guides to decluttering your phone and cleaning wipes, respectively.

Verizon, T-Mobile, and AT&T logos on phonesVerizon, T-Mobile, and AT&T logos on phones

When it comes to the monthly cost, AppleCare Plus is generally cheaper than wireless carrier insurance. Deductible prices however are about the same.

Sarah Tew/CNET

T-Mobile’s offering, however, does at least include AppleCare itself, which could be a compelling option for someone who is already looking to upgrade their phone more often.

And despite Apple and the carriers offering various insurance programs for the iPhone and other devices, you should also be aware of protection programs that are included with your iPhone purchase. Apple includes a one-year warranty that covers many repairs with every new iPhone as well as for refurbished devices sold by Apple. 

Plus, if you buy your phone using a credit card with an extended warranty benefit, you could get an additional year of coverage by filing a claim with your credit card company. Some cards also provide for cell phone protection — usually up to $800 per claim — as long as you pay your wireless carrier bill using that credit card. 

Yet for some people, having direct access to repairs and customer service from either Apple or a wireless carrier could provide some peace of mind. In all cases, make sure that you know how to use these benefits and that an Apple or carrier store is nearby should you need them.

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).

Photo of John Timmer

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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.

Photo of WIRED

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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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