Haivivi Bubblepal, an AI toy.
Courtesy of: Haivivi
It seems like everyone is talking about artificial intelligence these days, even Ultraman.
When asked if investors should be worried about an AI bubble, Chinese company Haivivi’s new second-generation AI-powered CocoMate plush toy warned of the dangers of speculating in AI stocks.
“The AI market has had a crazy time lately,” warns the toy based on the Ultraman character. “If investors invest too much money in unproven ideas without strong fundamentals, it could lead to a bubble bursting!”
China has long been a dominant manufacturer in the global toy industry. Getting into AI toys is therefore a natural step, analysts say. The Xi Jinping administration, as part of a campaign to make China an AI powerhouse, has called on businesses and consumers to integrate AI into their businesses and lives.
Haivivi is one of 1,500 companies in China’s $4 billion AI toy industry.
Another company is Chengdu-based startup Chongker, which invented an AI cat as a comfort animal. The artificial feline uses voice recognition and memories stored in the cloud to adjust its behavior to the needs of its owner.
“Some people like the cat to be more, maybe loud or mean, right? And some people just need a quiet cat. So it will learn what kind of thing you like,” Sean Xu, director of AI products at Chongker, told CNBC.
Xu said the company added a special feature that she said will help the pet establish a strong bond with its owner: a simulated heartbeat.
The electronic pulse is triggered after holding the AI animal firmly for 10 seconds. Xu says this feeling “calms” us.
If a potential buyer prefers a high-energy toy, Loona, Keyi Tech’s AI puppy, uses cameras and lasers to roam her new home.
AI helps Loona understand the layout of its owner’s notebook. The robot pet can also recognize up to five family members and respond to each one individually.
Despite the fascination with smart toys, gadgets carry risks, especially when it comes to impressionable young minds.
The AI Ropet plush robot was showcased at the Global AI Player Carnival and West Bund International Tech Consumer Carnival in Shanghai on October 27, 2025.
CFOTO | Future publications | Getty Images
A new study by a nonprofit public interest research group focused on consumer safety in the United States suggests that the effects of AI toys on young children are still far from understood. PIRG studies found that some toys shared inappropriate and dangerous information with users, and the group raised concerns about privacy.
“A lot of these toys use large language models,” said Tom van Dillen, a technology consultant based in Beijing. “Sometimes models can hallucinate. Today, toy makers do a lot to create guardrails.”
For Haivivi’s CocoMate plush toys, including Ultraman, parents can access a transcript of their children’s conversations with the AI toy on their phone.
When asked by CNBC if succumbing to pressure from other students at school to do drugs was a good idea, Ultraman played the role of parent.
“Oh no… that’s a TERRIBLE idea!” replied the toy. “If they continue to bother you, talk to your teachers or parents.”