Embodied, the AI company behind Moxie, a $799 social robot designed for autistic children, announced its closure due to financial struggles and a sudden loss of funding. With the shutdown, Moxie, which relied on cloud-based language models, will cease to function, leaving customers without refunds, repairs, or support.
Parents and children are reacting emotionally, as Moxie becomes unusable shortly after launch. Embodied provided a guide for parents to explain the situation to kids, but many are expressing grief online, likening it to losing a friend.
The situation highlights concerns about relying on costly cloud-dependent AI for sensitive tasks like socialization, especially for neurodivergent children. It also underscores the risks of the AI bubble, where companies prioritize innovation without ensuring long-term sustainability, leaving consumers stranded when systems fail.
Source: Aftermath
