Technologies
Best Phone Under $500 for 2023: New Features at Lower Prices
Our latest best phone under $500 is so close to its more expensive sibling, there’s no reason to pay more for it.
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The best phones under $500 include so many features that you want to see in an excellent phone, with sacrifices that you might not even notice. These are phones that include displays with high refresh rates, modern chips, good cameras and 5G. They even get several years of software and security updates.
These phones do make cuts that justify why they’re cheaper than phones that cost more than $500, but those cuts are increasingly in areas that might not raise any particular flag when you just want a reliable device. Apple’s iPhone SE along with Google’s Pixel 6A and 7A phones, for instance, have a smaller screen, but all run on newer processors and software. Samsung’s Galaxy A series of phones often look just like the Galaxy S line, but instead run on a less powerful processor. And the Moto G Stylus 5G takes nice photos, provides a roomy 256GB of space and throws in a stylus, but Motorola doesn’t provide software support for as long as its competitors.
Photography and video in particular are areas where the phones in this price bracket take a noticeable hit in comparison to their more expensive counterparts. However, photo-processing software should help pick up some of the slack. For instance, while the iPhone SE has a single 12-megapixel camera that doesn’t support night photography, its A15 Bionic chip does allow for Apple’s Deep Fusion processing. It’s a similar situation for the Pixel 6A, which uses a 12-megapixel main camera and a 12-megapixel ultrawide camera, yet can enhance those photos with processing powered by the phone’s Tensor chip. However the new Pixel 7A offers a 64-megapixel main camera, which some might consider an upgrade from the Pixel 7’s 50-megapixel main camera.
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You can see the pros and cons of each of these phones below, with more details available in our full reviews.

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What is the best phone under $500?
Google’s $499 Pixel 7A compares so closely to the $599 Pixel 7, that it’s now tough to recommend the more expensive option. The Pixel 7A includes the same Tensor G2 processor that powers Google’s Pixel-exclusive features, gets wireless charging, a 90Hz refresh rate and a 64-megapixel main camera paired up with a 13-megapixel ultrawide camera. My colleague Lisa Eadicicco said that the Pixel 7A does miss out on the Pixel 7’s battery share feature, the camera’s Action Pan mode and slightly faster charging, but none of those features feel like a major omission.
And if you want to save even more money, last year’s Pixel 6A has received a permanent price drop to $349 and still has a lot to offer. It runs on the Tensor chip, includes many of the same Pixel features like Real Tone for photography and Hold for Me for phone calls and takes crisp and colorful photos for a phone of its price. This is especially true when it gets discounted to $299, which it often is, making it the best phone for under $300 as long as it’s on sale.
Best phones under $500
Google’s budget phone took a leap forward in 2023 with the Pixel 7A, which offers many of the same benefits as the Pixel 7 but at a cheaper price. Like the Pixel 7, the Pixel 7A runs on Google’s Tensor G2 processor, meaning it has many of the same photo editing and language translation features as its pricier sibling. The Pixel 7A’s 64-megapixel camera also takes excellent photos that rival the Pixel 7’s in quality.
While we still like the Pixel 7, the Pixel 7A’s lower price makes it a better deal for most people. Only opt for the Pixel 7 if you really want a slightly larger screen and are willing to pay the extra $100 for it. Otherwise, the main differences between the Pixel 7 and 7A come down to the former’s more durable build, slightly faster charging and its ability to wirelessly charge compatible accessories. The Pixel 7 also has a larger camera sensor that’s more sensitive to light, according to Google, but CNET’s Lisa Eadicicco didn’t notice much of a difference.
The Pixel 6A is still available, and at its permanently discounted price of $349, it still has a lot to offer. CNET’s Lisa Eadicicco said in her Pixel 6A review that the phone includes many of the Pixel 6’s best features, and that remains the case even as the Pixel 7A hits the market at $499.
The phone is slightly smaller than the Pixel 6, featuring a 6.1-inch OLED display and a refresh rate of 60Hz. And while it has a 12.2-megapixel main camera and a 12-megapixel ultrawide camera, photos taken look quite good using Google’s photo processing software. Pictures can benefit from its Real Tone skin tone feature, Face Unblur, Night Sight for darker photography and the Magic Eraser for removing unwanted elements from a photo.
The Samsung Galaxy A53 includes many of the best features seen in the Galaxy S22 line, with a few tradeoffs to hit that lower price. The phone includes a 6.5-inch AMOLED screen with a 2,400×1,080-pixel resolution, 5G support and a long-lasting 5,000-mAh battery. The phone also comes with a 64-megapixel main camera, 12-megapixel ultrawide camera, 5-megapixel macro camera and 5-megapixel depth camera.
But a particular high point for this phone is Samsung’s pledge to provide four years of software support, in addition to shipping with Android 12 with Samsung’s One UI 4.1. However, Samsung just announced a new version of this phone, called the Galaxy A54 5G, which we’re looking forward to testing soon.
The $429 iPhone SE is a mix of an older design with the latest smartphone features, including Apple’s A15 Bionic chip and 5G support. It’s also one of the few phones on the market that includes a smaller, 4.7-inch screen.
It’s that throwback design, which continues the general shape that Apple has used since 2014, that could be what you love or dislike most about this phone. If you want a larger iPhone in this price range, you can also consider the iPhone 11, and get a bigger screen and Face ID. But that phone does not include 5G connectivity.
The phone also only includes one 12-megapixel main camera, which does not support night mode. Most other phones in this roundup include multiple cameras and features like night mode, making the omission noticeable. However, photos make up for this by including the Deep Fusion photo-processing technique to enhance medium-to-low light photos, and Smart HDR4 processing for improving color and contrast. CNET Managing Editor Patrick Holland did find that video shot in 4K resolution at 60 frames per second is particularly good on the iPhone SE, but it will not include the Cinematic Mode seen on the iPhone 13.
The $500 Moto G Stylus 5G (2022) is one of the best stylus-equipped phones you can get right now, especially for the price. You get Android 12, 5G connectivity, a large 6.8-inch screen and a spacious 256GB of storage. Unfortunately, the phone is only promised one software update and three years of security updates, which is a much shorter timeline than the four years promised by Samsung for the Galaxy A53.
Yet if you want a stylus-equipped phone, the next step-up option is the substantially more expensive Galaxy S22 Ultra at $1,200.
With the launch of the iPhone 14 series, Apple discontinued the $500 iPhone 11, but it’s still widely available. It might be a few generations old, but this phone is still more than capable, handling gaming well and equipped with two superb rear cameras. It is missing 5G support, which is increasingly improving as wireless carriers invest in the network, but the phone will work fine on LTE and Wi-Fi. The iPhone 11 also does not support MagSafe accessories, which were introduced alongside the iPhone 12.
Just note that some places may be selling refurbished versions of the phone since Apple itself is no longer selling new iPhone 11 models. Best Buy does not carry any unlocked models, so you’ll have to sign up for a service plan through either AT&T, Verizon, T-Mobile or Sprint.
The Nothing Phone 1 is technically available in the US for $299, but only through a beta program that is selling an international model with limited US carrier compatibility. While the company does plan to officially launch a future phone for the North American market, this phone is still worth a look in countries where it’s available. It offers a striking design and decent specs for the money, even at its higher £399 UK price (which converts to roughly AU$700).
The Nothing Phone 1 is adorned with LED strips on the back, each of which is called a «glyph,» that light up for alerts and notifications. That design is accompanied by two 50-megapixel cameras: a wide angle and an ultrawide. Around the front is a 6.55-inch 120Hz display with a 2,400-by-1,080-pixel resolution and a 16-megapixel selfie camera. The phone runs on a Snapdragon 778G Plus chip, with models that start with 8GB of memory and 128GB of storage.
All that amounts to a phone that compares well within the price range, especially given its camera quality and looks.
How we test phones
Every phone on this list has been thoroughly tested by CNET’s expert reviews team. We actually use the phone, test the features, play games and take photos. We assess any marketing promises that a company makes about its phones. And if we find something we don’t like, be it battery life or build quality, we tell you all about it.
We examine every aspect of a phone during testing:
- Display
- Design and feel
- Processor performance
- Battery life
- Camera quality
- Features
We test all of a phone’s cameras (both front and back) in a variety of conditions: from outdoors under sunlight to dimmer indoor locales and night time scenes (for any available night modes). We also compare our findings against similarly priced models. We have a series of real world battery tests to see how long a phone lasts under everyday use.
We take into account additional phone features like 5G, fingerprint and face readers, styluses, fast charging, foldable displays and other useful extras. And we, of course, weigh all of our experiences and testing against the price so you know whether a phone represents good value or not.
Read more: How we test phones
Phones under $500 comparison
Samsung Galaxy A53 5G vs. Motorola Moto G Stylus 5G vs. Google Pixel 6A vs. Apple iPhone SE (2022) vs. Nothing Phone 1 vs. Apple iPhone 11
| Samsung Galaxy A53 5G | Motorola Moto G Stylus 5G (2022) | Google Pixel 6A | Apple iPhone SE (2022) | Nothing Phone 1 | iPhone 11 | |
|---|---|---|---|---|---|---|
| Display size, resolution | 6.5-inch AMOLED (2,400×1,080 pixels); 120 Hz | 6.8-inch LTPS LCD FHD+; 2,460 x1,080 pixels; 120 Hz | 6.1-inch OLED; (1080 x 2400); 60Hz | 4.7-inch LCD; (1,334×750 pixels); 60 Hz | 6.55-inch OLED display,2,400 x1080 pixels; | 6.1-inch LCD Liquid Retina; 1,792×828 pixels |
| Pixel density | 405ppi | TBD | 429 ppi | 326ppi | 402ppi | 326ppi |
| Dimensions (inches) | 6.28 x 2.94 x 0.32 in. | 6.65 x 2.98 x 0.37 in. | 6.0 x 2.8 x 0.35 in. | 5.45 x 2.65 x 0.29 in. | 5.94×2.98×0.33 in. | |
| Dimensions (millimeters) | 159.6 x 74.8 x 8.1 mm | 168.9 x 75.8 x 9.3 mm | 152.2 x 7.18 x 8.9 mm | 138.4 x 67.3 x 7.3 mm | 159.2 x 75.8 x 8.3 mm | 150.9×75.7×8.3 mm |
| Weight (ounces, grams) | 6.67 oz.; 189g | 7.58 oz.; 215 g | 6.3 oz.; 178g | 5.09 oz.; 144g | 193.5g | 6.84 oz.; 194g |
| Mobile software | Android 12 | Android 12 | Android 12 | iOS 15 | Android 13 | iOS 13 |
| Camera | 64-megapixel (wide), 12-megapixel (ultra-wide), 5-megapixel (macro), 5-megapixel (depth) | 50-megapixel (wide), 8-megapixel (ultrawide/macro), 2-megapixel (depth) | 12.2-megapixel (wide), 12-megapixel ultra wide) | 12-megapixel (wide) | 50-megapixel (main), 50-megapixel (ultra-wide) | 12-megapixel (wide), 12-megapixel (ultra-wide) |
| Front-facing camera | 32-megapixel | 16-megapixel | 8-megapixel | 7-megapixel | 16-megapixel | 12-megapixel with Face ID |
| Video capture | 4K | 1,080p | 4K | 4K | 4K at 60fps | 4K |
| Processor | Exynos 1280 | Snapdragon 695 5G | Google Tensor | Apple A15 Bionic | Snapdragon 778G+ | Apple A13 Bionic |
| RAM/Storage | 6GB/128GB | 8GB/256GB | 6GB RAM/128GB storage | 64GB, 128GB, 256GB | 8GB + 128GB, 8GB + 256 GB, 12GB RAM + 256GB | 64GB, 128GB, 256GB |
| Expandable storage | Up to 1TB | Up to 1TB | None | NA | None | None |
| Battery/Charger | 5,000 mAh (charger not included, does not support wireless charging) | 5,000 mAh (10W wired charger included) | 4,410 mAh capacity; 18-watt fast charging (adapter sold separately) | Battery NA (20W wired charging — charger not included), 7.5W wireless charging) | 4,500 mAh (33W wired charging, 15W wireless charging, 5W reverse charging) | Not disclosed, but Apple claims it will last 1 hour longer than iPhone XR |
| Fingerprint sensor | In-display | Side | Under display | Home button | In-display | None (Face ID) |
| Connector | USB-C | USB-C | USB C | Lightning | USB-C | Lightning |
| Headphone jack | None | Yes | None | None | None | No |
| Special features | 5G-enabled; IP67 rating; supports 25W wired fast charging, Samsung Pay | 5G-enabled; OIS for main camera; NFC for Google Pay; | 5G-enabled, 18W fast charging, Wi-Fi 6E, security updates for 5 years, Android OS updates for 3 years, dual SIM, IP67 water resistance | 5G-enabled; supports 25W wired fast charging; Water resistant (IP67); dual-SIM capabilities (nano-SIM and e-SIM); wireless charging | 5G, IP53, Three years of Android updates, Dual Sim, 120Hz adaptive refresh rate | Water resistant (IP68); dual-SIM capabilities (nano-SIM and e-SIM); wireless charging |
| Price off-contract (USD) | $450 | $500 | $449 | $399 (64GB), $449 (128GB), $549 (256GB) | N/A | $499 |
| Price (GBP) | £399 | NA but converts to £405 | £399 | £419 (64GB), £469 (128GB), £569 (256GB) | £399 | £489 |
| Price (AUD) | AU$699 | NA but converts to AU$715 | A$749 | AU$749 (64GB), AU$829 (128GB), AU$999 (256GB) | N/A | AU$849 |
Phones under $500 FAQs
Are cheaper phones worth it?
For many people, a phone that costs less than $500 will likely have everything you need for communication, photography and entertainment. In some cases, the phones even provide some of the latest features seen on higher-end phones like smooth 120Hz refresh rates and multiple cameras.
However, you should be aware of — and OK with — the limitations a phone may have compared to its more expensive counterparts. For instance, if you want an iPhone with a bigger screen than the iPhone SE and iPhone 11’s screens, your next best option is the $899 iPhone 14 Plus. That’s far outside the $500 price range, but you also get additional benefits like an improved camera.
On the other hand, if you want a phone with a bigger screen and if running Android is fine, you’ll have plenty of options that are under $500.
Can you get a good camera on a cheaper phone?
Yes, you can find several cheaper phones that take great photos, whether it’s through the camera available on the device, photo processing software on the phone or — is most often the case — a combination of both.
Apple’s iPhone SE includes the A15 Bionic chip, which supports Smart HDR4 processing and Apple’s Deep Fusion processing. Smart HDR4 helps with improving color and contrast, while the Deep Fusion processing helps with medium- to low-light environments. CNET Managing Editor Patrick Holland put together a sampling of photos and videos taken on the phone during his review, which can be watched on the CNET Highlights YouTube channel. However, the iPhone SE also has only one 12-megapixel camera, and that camera does not support night photography.
Over on the Android side, the Google Pixel 6A includes the company’s Tensor chip, which brings photography features like Real Tone for capturing more accurate skin tones, Face Unblur for fixing a person’s face and Magic Eraser for removing unwanted objects. But it has a 12-megapixel main camera paired up with a 12-megapixel ultrawide camera, which takes good photos but is a clear step down from the 50-megapixel main camera seen on the Pixel 6 and Pixel 7.
Samsung’s Galaxy A53 is an interesting case: Iit has a main 64-megapixel camera alongside a 12-megapixel ultrawide, 5-megapixel macro camera and 5-megapixel depth camera. While that’s more megapixels than the 50-megapixel main camera on the Galaxy S22, the image detail is a step down with the S22 able to produce photos with better contrast and sharpness.
What makes these phones cheaper?
Each company takes a different approach toward cheaper phones.
The iPhone SE, for example, has a recent Apple processor packed inside an otherwise dated phone design. Google’s Pixel 6A likewise includes the new Tensor processor, but uses an older 12.2-megapixel main camera instead of the 50-megapixel main camera found on the $599 Pixel 6.
Samsung’s Galaxy A53 takes the opposite approach. It includes a processor that’s slower than the Galaxy S22’s but includes other modern features like a screen with a high refresh rate.
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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







