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12 iOS 16 Features That Will Help You Make the Most of Your iPhone

You don’t even need a new iPhone to take advantage of most of these features.

This story is part of Focal Point iPhone 2023, CNET’s collection of news, tips and advice around Apple’s most popular product.

Apple’s iPhone software keeps adding new features, and you don’t even need a new iPhone 14 to take advantage of them. With iOS 16.3, first released in January, Apple added a number of small but significant updates to the iOS 16 iPhone software, including security keys for iCloud and new wallpaper options. A smaller iOS 16.3.1 update in February then threw in a few bug fixes and security updates as well. And now the release of iOS 16.4 and its new emojis are available for the iPhone, too. 

All of these updates continue to add onto Apple’s iOS 16, which first came out in September for anyone with a compatible iPhone. Installing the operating system software on your iPhone gives you new features and settings, such as a more customizable lock screen, a way to edit sent messages and a magic photo editing tool. Plus, iOS 16 brings back the battery percentage icon.

iOS 16 was announced last spring at Apple’s WWDC conference prior to its public launch alongside the iPhone 14. If you’re curious about what else iOS 16 offers, read on as we break down the 11 best new features on your iPhone. Just make sure you’ve already completed these three steps first, and check out the lesser-known features lurking in iOS 16 too.

New emoji include animals and a new smiley

9 of the new emoji, arranged in a grid on a pink background: peapod, hair pick, goose, hand, smiley, gray heart, maracas, donkey, wifi signal9 of the new emoji, arranged in a grid on a pink background: peapod, hair pick, goose, hand, smiley, gray heart, maracas, donkey, wifi signal

A sample of the new emoji arriving with iOS 16.4.

Karisa Langlo/CNET

After downloading iOS 16.4, your iPhone’s emoji keyboard will expand to include 31 new symbols to decorate your chats — many of which have a festive theme. Maracas, Pink Heart, Light Blue Heart and Folding Hand Fan arrive alongside animals like the Donkey, Moose and the Goose. Meanwhile the Shaking Face could help you express shock and confusion.

The ability to edit and ‘unsend’ messages

«Embarrassing typos are a thing of the past,» Craig Federighi, Apple’s senior vice president of software engineering, said at WWDC as he introduced three of the most requested features for the Messages app.

First, in iOS 16 you’re able to edit sent messages. So if you notice a typo after a message, you’ll be able to edit the message after the fact. A tiny «edited» appears in the status under the message.

A screenshot of the iOS 16 Messages app showing one that's been editedA screenshot of the iOS 16 Messages app showing one that's been edited

In Messages, you can edit previously sent messages.

Apple

Next, and this might be my favorite new feature, you can immediately recall a sent message. If you accidentally send an unfinished message, you can use the Undo Send tool to prevent it from being read and hopefully look less chaotic to your friends and family.

Last, you can mark messages and threads as unread. This could be an excellent tool for when you don’t have time to respond to a message in the moment, but want to make sure you come back to it later.

A new customizable lock screen

One of the things you look at the most on your iPhone is the lock screen, especially if you have a Face ID-equipped iPhone. iOS 16 brings the most substantial update to the iPhone’s lock screen yet. Press and hold to edit your lock screen. You can swipe to try out several different styles. Each style changes the color filter for the background photo and the font on the lock screen so everything complements each other. This feels a bit like Apple’s take on Google’s Material You, which launched with Android 12.

You can also customize the fonts for the time and date, and add lock screen widgets like temperature, activity rings and a calendar. The widgets are akin to complications on the Apple Watch lock screen. 

Your iPhone will become more customizable in iOS 16. You’ll be able to choose how your lock screen looks, down to the font and color.

Apple

You can even set up multiple customized lock screens with different widgets and easily swipe to switch between them. There’s also a photo shuffle option that automatically changes the pictures on your lock screen.

One feature we’d been hoping to see Apple add was an always-on display. It’s something nearly all Android phones have; even the Apple Watch does. Well, with the new iPhone 14 Pro and iPhone 14 Pro Max, the always-on display has finally arrived.

A screenshot of the Live Activities tool on the bottom of the lock screenA screenshot of the Live Activities tool on the bottom of the lock screen

iOS 16 adds a feature that developers can use called Live Activities. This is essentially a mini view of the real-time progress of a workout, sporting event or Uber ride from your iPhone’s lock screen.

Apple

Notifications and live activities

Sometimes notifications can cover up your lock screen’s photo, so iOS 16 moves notifications to the bottom of your display. As you receive them, instead of being compiled into a list, they appear like a vertical carousel. This not only looks better but should be a big help for one-handed use of your iPhone.

iOS 16 also aims to solve another notification problem. Sometimes you get a bunch of notifications in a row from one app, like the score of a basketball game. A new tool for developers called Live Activities makes it easier to stay on top of things happening in real time from your lock screen, instead of getting a series of interruptions.

Live Activities should make it easier to follow sporting events, workouts or even the progress of an Uber ride.

Skip CAPTCHAs using Private Access Tokens

The CAPTCHA — which stands for Completely Automated Public Turing test to tell Computers and Humans Apart — has been a necessary evil across the internet. CAPTCHAs are designed to make sure that a person is accessing a website or service, and not a bot. I find them annoying, as they often involve reading strangely written letters or having to find all the images that have a truck. With iOS 16, Apple plans to start replacing these awkward interactions with Private Access Tokens.

According to a video on Apple’s website demonstrating Private Access Tokens, websites that support the token will essentially log in and authenticate that you are indeed a human without your having to play any of the usual CAPTCHA games. Apple says in the video that the company is working with other companies to roll out support for this feature, so we can’t say the CAPTCHA will be dead after iOS 16 rolls out to the public. But the concept could provide some relief if it gets adopted.

Wallet and Apple Pay Later

ID cards from more states will be available in your Wallet app along with more security and privacy features. In iOS 16 you can also protect your identity and age. So rather than showing your exact birth date, the Wallet app will display your ID and that you’re over 21.

iOS 16 makes sharing keys easier with apps like Mail and Messages. When your friend receives the key, they can add it to the Wallet app on their iPhone. Apple said it’s working to make sure that shared keys are an industry standard and free for others.

A screenshot of cards in the Wallet app for iOS 16A screenshot of cards in the Wallet app for iOS 16

The Wallet app in iOS 16 gets a bunch of small but notable updates, including the Apple Pay Later payment plan.

Apple

Apple Pay will support new types of payments and adds a new feature called Apple Pay Later, a Klarna-like service that lets you split the cost of an Apple Pay purchase into four equal payments spread over six weeks, with zero interest and no fees. Upcoming payments are managed through the Wallet app, making it easy to keep track of dates and payments.

But Apple Pay doesn’t stop there. A new feature will also help you track Apple Pay orders and lets merchants deliver detailed receipts and tracking information. This should make it easier to stay up to date on the status of all your orders. 

A screenshot of a thread in Messages where a cutout of a dog is addedA screenshot of a thread in Messages where a cutout of a dog is added

You can tap and hold on the subject of a photo and separate it from the background. Then you can drag it into another app like Messages to share it.

Apple

Visual Look Up’s tap and drag for photos

In iOS 15, Visual Look Up analyzes your photos and can identify objects like plants, landmarks and pets. iOS 16 takes this to the next level. When you touch a photo’s subject like the dog in the image above, you can lift it away from the background and add it to apps like Messages. Essentially it’s a tap-and-hold tool that removes a photo’s background.

Apple sometimes overuses the word «magic,» but this feature truly seems like it.

Craig Federighi introduces SharePlay in Messages in front of a giant screenCraig Federighi introduces SharePlay in Messages in front of a giant screen

During the keynote for WWDC, Apple executive Craig Federighi introduces SharePlay for the Messages app.

Apple

SharePlay comes to Messages

SharePlay, which debuted in iOS 15, lets you have a shared experience while connecting with someone over FaceTime. You can watch TV shows, listen to music in sync and other things. iOS 16 adds the ability to discover more apps that support SharePlay from within FaceTime.

But perhaps one of the coolest things Apple did for SharePlay was to make it work within the Messages app. Apple said that this was one of the biggest requests from app developers. Now when you want to share a movie on Disney Plus, you can start SharePlay together with a friend while chatting in Messages.

An Apple executive presents the Safety Check feature during the WWDC keynoteAn Apple executive presents the Safety Check feature during the WWDC keynote

Safety Check lets you quickly reset location sharing and access to passwords. It’s intended to be helpful for people in abusive relationships.

Apple

Safety Check aims to help people in abusive relationships

Safety Check is a new feature intended to be helpful for people in abusive relationships. It lets you review and reset who has access to location information as well as passwords, messages and other apps on an iPhone.

Focus mode updates and Focus filters

Focus mode gets several updates. The first applies Focus behaviors to widgets and lock screen looks. So you could have one lock screen set for when your Work Focus is enabled and another for workouts.

Apple added specific Focus filters that apply your iPhone’s Focus mode within apps. For example, in Safari, you can limit what tabs are shown depending on what Focus mode you have active.

Apple Maps adds transit fare cards

Maps gets several updates. You’ll be able to plan trips with up to 15 different stops along the way. If you start planning a trip with the Maps app on your Mac, you’ll be able to share that to your iPhone.

And in something similar to what Google announced for Google Wallet in Android 13, you’ll be able to see transit fare estimates as well as add more money to a fare card from within Apple Maps.

Craig Federighi shows off the new Quick Start feature during the WWDC keynoteCraig Federighi shows off the new Quick Start feature during the WWDC keynote

In iOS 16 you’ll be able to customize Quick Start with a specific child’s iCloud parental controls and settings.

Apple

iCloud family checklist

iCloud gets several new features. One of the more interesting ones is the option to quickly set up a new device for your child. When Quick Start appears, you have the option to pick a user for the new device and use all the existing parental controls you’ve previously selected and configured. However, this is not what many of us still want: the ability to set up separate users for the same device.

There’s a new family checklist with tips for updating settings for your kids as they get older, like a reminder to check location-sharing settings or share your iCloud Plus subscriptions.

For more, check out everything Apple announced at its Sept. 7 «Far Out» event. Plus, here’s how to download iOS 16.

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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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.

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