AI toy Hi-Vivi Bubble Pal.
Provided by: Hibibi
It seems like everyone is talking about artificial intelligence these days. Including Ultraman.
Asked whether investors should worry about an AI bubble, Chinese company Hibibi’s new second-generation AI-powered stuffed animal, Cocomate, warned about the dangers of speculating in AI stocks.
“The AI market is moving fast and furious these days,” the toy based on the Ultraman character warned. “When investors pour large amounts of money into unproven ideas without solid fundamentals, it can lead to a bubble bursting.”
China has been the dominant manufacturer in the global toy industry for many years. Therefore, entering AI toys is a natural step, analysts say. Xi Jinping’s government is running a campaign to turn China into an AI superpower, instructing companies and consumers to integrate AI into their business and lives.
Haivivi is one of 1,500 companies in China’s $4 billion AI toy industry.
Another company is Chongker, a Chengdu-based startup that has invented AI cats as healing animals. This artificial feline uses voice recognition and cloud-stored memories to tailor its behavior to its owner’s needs.
“Some people like their cats to be noisy, some people like them to be naughty, right? And some people just want a quiet cat. So the cat learns what you like,” Sean Hsu, director of AI products at Chongker, told CNBC.
Xu said they have added a special feature that they believe will help pets form strong bonds with their owners: heartbeat simulation.
Holding the AI pet firmly for 10 seconds will trigger an electronic pulse. Xu says that feeling “calms” people.
If potential shoppers prefer high-energy toys, Keyi Tech’s AI pup Loona uses a camera and laser to fly around her new home.
AI helps Loona understand the layout of her owner’s pad. The robot pet can also recognize up to five family members and respond to each one individually.
Despite the appeal of intelligent toys, this gadget comes with risks, especially for impressionable young people.
Ropet, an AI pet robot stuffed animal, unveiled at the Global AI Player Carnival and West Bund International Technology Consumer Carnival held in Shanghai on October 27, 2025.
Photo | Future Publishing | Getty Images
A new study by the Public Interest Research Group, a U.S. consumer safety nonprofit, suggests that the effects of AI toys on young children are not yet understood. PIRG’s investigation found that some toys were sharing inappropriate and dangerous information with users, and the group raised privacy concerns.
“Many of these toys use large-scale language models,” said Tom Van Diren, a Beijing-based technology consultant. “Models can sometimes hallucinate. Toy manufacturers are now putting a lot of effort into creating guardrails.”
In the case of Hibibi’s Cocomate plush toys, including Ultraman, parents can access recordings of their children’s conversations with the AI toy on their smartphones.
Ultraman played parent when asked by CNBC if it was a good idea to give in to pressure from other students to use drugs at school.
“No, that’s a terrible idea!” the toy responded. “If they keep bothering you, tell your teacher or your parents.”
