Startup will brick $800 emotional support robot for kids without refunds

Startup Embodied is closing down, and its product, an $800 robot for kids ages 5 to 10, will soon be bricked.

Embodied blamed its closure on a failed “critical funding round." On its website, it explained:

We had secured a lead investor who was prepared to close the round. However, at the last minute, they withdrew, leaving us with no viable options to continue operations. Despite our best efforts to secure alternative funding, we were unable to find a replacement in time to sustain operations.

The company didn’t provide further details about the pulled funding. Embodied’s previous backers have included Intel Capital, Toyota AI Ventures, Amazon Alexa Fund, Sony Innovation Fund, and Vulcan Capital, but we don't know who the lead investor mentioned above is.

When it first announced Moxie in April 2020, Embodied described the robot as a “safe and engaging animate companion for children designed to help promote social, emotional, and cognitive development.” It advertised play built around “best practices in child development and early childhood education”; changing weekly themes, like empathy, friendship, and respect; and activities like meditation, reading, and drawing with the bot.

But soon, none of those features will be available, making the pricey children’s toy virtually useless. According to Embodied, Moxie can’t perform core functionality without cloud connectivity. Worse, owners apparently have an uncertain and limited amount of time until the devices are bricked. Per Embodied:

We don’t know the exact date when services will cease. It is likely to happen within days. However, we are exploring options to keep Moxie operational for as long as possible, although we cannot provide any guarantees.

Since Embodied marketed Moxie as a companion and development toy for children, there’s concern about kids potentially suffering an emotional toll after the robot abruptly becomes inoperable. Embodied has responded by promising to provide a guide for telling children about Moxie's demise. Online, however, customers are already sharing videos of their sad kids learning that their robot friend will stop playing with them, as Axios pointed out.

In addition to the robot being bricked, Embodied noted that warranties, repair services, the corresponding parent app and guides, and support staff will no longer be accessible.

“Unable to offer refunds”

Embodied said it is “unable” to offer most Moxie owners refunds due to its “financial situation and impending dissolution.” The potential exception is for people who bought a Moxie within 30 days. For those customers, Embodied said that “if the company or its assets are sold, we will do our best to prioritize refunds for purchases," but it emphasized that this is not a guarantee.

Embodied also acknowledged complications for those who acquired the expensive robot through a third-party lender. Embodied advised such customers to contact their lender, but it’s possible that some will end up paying interest on a toy that no longer works.

Embodied said it’s looking for another company to buy Moxie. Should that happen, the new company will receive Embodied customer data and determine how it may use it, according to Embodied’s Terms of Service. Otherwise, Embodied said it “securely” erases user data “in accordance with our privacy policy and applicable law,” which includes deleting personally identifiable information from Embodied systems.

Another smart gadget bites the dust

Currently, there’s some hope that Moxies can be resurrected. Things look grim for Moxie owners, but we’ve seen failed smart device companies, like Insteon, be resurrected before. It's also possible that someone will release of an open-source version of the product, like the one made for Spotify Car Thing, which Spotify officially bricked today.

But the short-lived, expensive nature of Moxie is exactly why some groups, like right-to-repair activists, are pushing the FTC to more strongly regulate smart devices, particularly when it comes to disclosure and commitments around software support. With smart gadget makers trying to determine how to navigate challenging economic landscapes, the owners of various types of smart devices—from AeroGarden indoor gardening systems to Snoo bassinets —have had to deal with the consequences, including broken devices and paywalled features. Last month, the FTC noted that smart device manufacturers that don’t commit to software support may be breaking the law.

For Moxie owners, disappointment doesn’t just come from wasted money and e-waste creation but also from the pain of giving a child a tech “companion” to grow with and then have it suddenly taken away.