While money markets and certificates of deposit still produce solid returns, holding too much cash could cost investors money. Investors have been investing in cash-like assets in recent years – and they have remained, despite the central bank’s decision to cut interest rates three times last year. The Fed’s last rate cut came in December and it is now on hold as it monitors economic data and the impact of the Iran war. “In an environment where cash levels have grown both tactically and structurally, the opportunity cost of staying on the sidelines could increase,” BlackRock warned in a report last week. According to the Investment Company Institute, money market fund assets totaled $7.63 trillion in the week ended April 29. In previous rate-cutting cycles, the one-year average return on capital after rate cuts began was about 2.8% after a pause of three months or longer, BlackRock analysis showed. To represent cash, the company used the Bloomberg US T-Bills 1-3 Month Index. In contrast, bonds have historically returned 7% to 9% over the same period, BlackRock noted. While recent events make it difficult to predict what the Fed might do on interest rates – and a trio of central bank officials recently disagreed with the suggestion that the next step could be a rate cut – BlackRock is telling investors to at least hedge their bets. “The current consensus is trending higher for an extended period of time and may even be trending toward a more hawkish Fed policy stance,” said Stephen Laipply, global co-head of iShares Fixed Income ETFs, in an interview with CNBC. “The risk is that if things resolve quickly, albeit unexpectedly, in terms of geopolitical risk, there could be a reversal,” he added. “As usual, interest rates may have already shifted and given a different direction to Fed policy, if you might respond by extending duration, even if modest.” Overall, the majority of traders don’t expect a cut at all this year, according to the CME FedWatch tool. About 16% expect interest rates to rise at the end of 2026, while almost 12% expect them to ease. “[W]“We believe the market continues to overstate the risk of central banks such as the Fed raising or not lowering interest rates,” UBS said in a note last week. “This represents an opportunity for investors to lock in returns by accumulating quality bonds, particularly in the short and medium-term segment.” “While we invest and wait, you’ll still get a nice coupon on fixed income.” The risk is that inflation is much higher than expected, forcing the Fed to raise interest rates, he added. But Alvarado believes it is more likely that rates will be raised for now as events continue to develop. “We don’t think the price of energy will stay at this level forever,” he said. “Yes, we do.” We are still at an impasse at the moment, but we don’t believe this will be sustainable as we look to the next three to five years. Alvarado also sees opportunity in municipal bonds, which have a taxable yield of about 5.84%. That’s a very high initial yield to hold as a buy-and-hold municipal bond investor, he said. According to Laipply, the fund has a 30-day SEC yield of 4.26% and an expense ratio of 0.25% with an effective duration of 2.14 years. “We still believe this is a really big opportunity in fixed income,” Laipply said. There is a lot of geopolitical risk, but I think the capital flows themselves show that investors are looking beyond that.”
Researchers from the National Autonomous University of Mexico (UNAM) have identified new ways to combat tuberculosis and reduce bacterial resistance, developing three new antibiotics derived from scorpion venom and habanero peppers.
A team led by Lourival Domingos Possani Postay, from the Institute of Biotechnology’s Morelos campus, created two drugs that demonstrated efficacy against the bacterium Mycobacterium tuberculosis, responsible for tuberculosis, as well as against Staphylococcus aureus, a microorganism that in hospital environments can cause various clinical complications, from skin infections to potentially fatal diseases such as pneumonia, meningitis, septicemia, and endocarditis.
The antibiotics were derived from the venom of the scorpion Diplocentrus melici, native to the state of Veracruz. The team was able to isolate two colorless molecules called benzoquinones—heterocyclic compounds that do not contain amino acids—from the arachnid’s toxin.
These molecules have a particular property: When they come into contact with air, they oxidize and change color. One becomes blue and the other red. This behavior allowed scientists to determine their chemical structure, synthesize them in the laboratory, and evaluate their biological properties.
The results showed that the blue benzoquinone has the capacity to act against the bacteria that cause tuberculosis, while the red one is effective against Staphylococcus aureus. Richard Zare, a renowned expert in the field of physical chemistry and a professor of chemistry at Stanford University, participated in this process, which strengthened the validation of the findings.
The project also involved the collaboration of Rogelio Hernández Pando, from the Salvador Zubirán National Institute of Medical Sciences and Nutrition, who evaluated the effect of blue benzoquinone in a mouse model with induced tuberculosis. After the trials, he concluded that the molecule works as a highly effective antibiotic against this disease.
Subsequently, the team conducted further tests and found that the same substance is also capable of eliminating other bacteria, such as Acinetobacter baumannii, a highly resistant opportunistic pathogen that is often associated with infections in the blood, urinary tract, lungs, and wounds, especially in hospitals.
The molecules obtained from the scorpion venom have already been patented in Mexico and South Africa. Currently, researchers are working on the development of nanoparticles that function as stabilizers and protection systems, so that antibiotics can be administered safely in the body.
According to Possani Postay, the next step is to carry out clinical trials, although he recognizes that these involve considerable investment. For this reason, he expressed interest in collaborating with a national pharmaceutical company to bring the compounds to large-scale production.
From a Sauce to an Antibiotic
At the same time, another group from the UNAM Biotechnology Institute identified a peptide in the habanero chili bell pepper that has the capacity to fight opportunistic bacteria that can cause serious infections, particularly in patients with weakened immune systems.
This project, led by Gerardo Corzo Burguete together with Georgina Estrada Tapia from the Yucatan Scientific Research Center, focused on the bacterium Pseudomonas aeruginosa, considered by the World Health Organization as a high-priority pathogen due to its resistance to conventional antibiotics.
The scientists identified a peptide called defensin J1-1 in the habanero bell pepper (Capsicum chinense). Based on this finding, they developed a biotechnological process to produce a drug called XisHar J1-1, which proved effective against Pseudomonas aeruginosa and has the potential to treat infections caused by fungi.
The procedure involved the genetic modification of a bacterium to induce the production of J1-1 defensin. Subsequently, the modified microorganism was cultured by submerged fermentation, an industrial technique that allows the generation of compounds on a large scale. Finally, the peptide was extracted and purified for use as an antibiotic.
Palm Springs’ best brunch is also its most dog-friendly. But don’t let the concept or the name fool you: this all-day cafe is more Dogue than dodgy. The airy atrium interior is all soft wood tones, Art Deco-inspired furniture, and palm fronds, while the menu offers all the hearty breakfast classics (French toast, Eggs Benedict) as well as more innovative options like smoked trout caesar salads and poke toast. Of course, there’s a dedicated menu for furry friends, too.
For a town that runs on poolside afternoons, great coffee isn’t always a given—but Ernest Coffee more than delivers thanks to Stumptown beans, house-made syrups, and a strong matcha program, all of which are best enjoyed on the sun-dappled patio that spills out toward its sister bar, Bootlegger Tiki (another must-visit).
There will most certainly be a line, but these chewy, New York-style bagels are well worth the wait. Made in-house using traditional methods, the bagels at Townie are something of a local favorite, especially thanks to unexpected flavor options like apple-cranberry, olive-fennel, and bacon-cheddar.
Photo: Courtesy Seymour’s
In a city that didn’t always prioritize serious cocktails, Seymour’s might just be Palm Springs’ best bar. Tucked discreetly inside Mr. Lyons, this speakeasy is dimly lit and old school, with vintage portraits lining the walls and black-and-white films flickering behind the bar. Best of all, it works equally well for a low-key date or a late-night hang with friends—especially once you make your way out to the patio for bocce ball in the desert air.
Though there are plenty of can’t miss restaurants in Palm Springs, there’s something inherently cinematic about dinner at Copley’s on Palm Canyon—not least because it occupies the former guesthouse of Cary Grant. Set just off the main strip, the almost-entirely al fresco restaurant is all twinkling candlelight and old school vibes, with tables set beneath the open sky with the mountains hovering in the distance. Still, it’s all convivial and laid-back enough to keep it from feeling too fussy. In the kitchen, chef Andrew Copley draws on a résumé spanning London to Hawaii, with dishes like chicken and lemongrass potstickers and crispy branzino with wasabi.
Petlibro Capsule Fountain for $37: This Petlibro fountain is a solid, inexpensive choice. It’s made from BPA-free plastic, has a five-layer filtration system and a stainless steel top reservoir. There’s a transparent water tank for easier monitoring, and it comes in a bunch of cute colors. The spout is tall and has a continuous flow, making it ideal for cats who love to drink from faucets. However, it’s not connected to an app, so you’ll have to monitor water levels and set manual reminders for filter replacement and cleaning. The plastic is also harder to clean, and it has a wired pump, which makes cleaning trickier (water and electricity are never an ideal combo). It works effectively but there are better options out there at this price point.
Photograph: Molly Higgins
Homerunpet Wireless Stainless Steel Pet Water Fountain for $36: This simple automatic water fountain emulates the water flow from a sink that many cats like, and works either battery-powered (for up to 30 days) on a charge for cordless placement anywhere, or plugged in. It also has dual flow modes, with continuous flow while plugged in, or intermittently while unplugged, using an infrared sensor to sense when cats are nearby. It has a wireless pump for less hassle while cleaning, and a stackable design that simplifies set up, cleaning, and changing the triple-layered filter. It has a a 2.5-liter capacity that allowed me a week between refills. I’d recommend this model to anyone looking for a reliable, cheap fountain, and I liked that the design had a bump to prevent stagnation or debris from sitting at the bottom of the basin. However, I would’ve preferred if the whole design was stainless steel or glass, since plastic tends to get dirtier more quickly.
Photograph: Molly Higgins
Petkit Eversweet Max for $90: This techy automatic fountain is battery-powered (lasting up to 83 days on a charge), and the drinking bowl is made of stainless steel, but the reservoir is plastic. Because of the shape of the basin with the chunky battery and reservoir bowl, it’s a little awkward to clean. The app logs every time a pet drinks and compares it over time to determine whether your cat’s drinking habits have changed. The app also keeps track of when the filter needs replacing and when you last added water. However, it doesn’t monitor or show how much water is left in the basin; you have to check manually. The design also made it a bit difficult to clean and refill easily.
Photograph: Molly Higgins
Enabot Rola Smart Pet Water Fountain for $50: This automatic fountain is cordless and runs on a rechargeable battery that lasts up to 60 days (although it can stay plugged in, too). It has a wireless pump that uses magnetic induction—this pump was one of the easiest and most hassle-free to clean of all I tested. The fountain has a stainless steel top that holds a decent amount of water even when not running. However, the tank is plastic—I’m wary of plastic because of its propensity to harbor bacteria (plus it doesn’t keep water as cold). The app gives reminders of when the water’s low, the fountain needs cleaning, or the filter needs replacing, plus it automatically stops dispensing water and sends you a reminder to refill via its app. It also logs the number of times your pet drank and for how long, monitoring hydration patterns over time. A complaint I had is that this fountain wouldn’t stay on continuous stream mode, even when plugged in, instead automatically switching to the motion-sensing stream.
Homerunpet Wireless Pet Fountain for $70: This cordless fountain can be used as a traditional fountain plugged in on its base, or can be detached and moved around the house with 30 days of battery life. I don’t love that this fountain is all plastic, but it’s easy to see water levels from the outside, the top and filter layers are super easy to remove, clean, and replace, and the wireless (basically silent) pump makes it a whole lot easier to clean. Plastic doesn’t keep the water as cold or clean as stainless steel, so you’ll have to clean it a lot more often. The fountain only begins bubbling when a cat (or human) approaches to save battery power, and there’s no option to control the flow (and no connected app). I like the wireless pump, but I’m really over plastic at this point.
Photograph: Kat Merck
Wonder Creature Cat Fountain for $23: My two cats have cycled through several water fountains over the past few years, but this no-nonsense version has been a stalwart. The inside is lit by a blue LED (bright enough to glow in the dark), and a clear viewing window on the side makes it easy to monitor the water level from afar. I also like the dishwasher-safe metal bowl and the fact you can remove parts of the white-and-yellow flower to create a fountain configuration your cat likes (waterfall, low bubble-up, tall bubble-up). The only major downsides are the fact it requires very frequent cleaning and filter changes due to the plastic body, and that there is no reservoir to hold water in case of power outage or pump malfunction. When I went on vacation, I had to swap it out for an old-school gravity dispenser. —Kat Merck
Happy & Polly Gothic Cat Drinking Fountain for $66: If you prefer gothic decor to neutral blandness, this ghostly ceramic cat fountain from Happy & Polly may tempt you to bite. The water bubbles up out of the top of the ghost and pools on the ceramic top. It’s fairly quiet at around 35 decibels, but it gets loud when the water is running low, and I worry about the motor burning out, as the 1.5-liter capacity can run dry fast. While the ceramic finish is easy to clean, it is fiddly to take apart. You will want to clean it once a week to prevent it from becoming slimy, and you must change the filter once a month. —Simon Hill
Petkit Eversweet Solo 2 for $50: I love three key features of this fountain: The bowl sits on top of a wireless charging base, so you don’t have to fiddle with cables, it is super easy to clean, and it’s very quiet at around 25 decibels. A flashing light warns you when the water is running low, and you can check when the filter needs to be changed in the app. There’s an optional smart mode that pumps intermittently and a night mode to turn the light off. Pleasingly, all three of our cats drink from this fountain, though that does mean I have to refill it often, as it only holds 2 liters. —Simon Hill
Photograph: Simon Hill
Oneisall Stainless Steel Pet Fountain for $50: This drinking fountain is about as simple as they come. As it’s designed for cats or small dogs, it has a large bowl, but some cats will prefer that. I love the mostly stainless steel construction, as it’s easy to keep clean and less prone to dirt and bacteria buildup. You can even stick parts into the dishwasher. This fountain can hold up to 7 liters of water, so you don’t have to refill as often. It’s fairly quiet at around 35 decibels, but it gets louder when the water is running low (a red light warns you when it needs a refill). You should clean once a week and rinse the filter. The filter packs are relatively affordable, and you need to swap them once a month. —Simon Hill
Photograph: Molly Higgins
Petlipo Cordless Cat Water Fountain (with filters) for $50: This all-plastic pet fountain sits on a dock for easier tank cleaning and is rechargeable for up to 60 days of cordless power. It has a wire-free pump, a large 2.6-liter capacity, and three customizable water flow modes (induction, timer, and continuous flow). The heavy-duty filter is encased in a plastic cage and only needs to be replaced every four to five weeks. I had no issues while using this fountain, but at nearly $50, it’s egregiously expensive for being made out of cheap (and bacteria-harboring) plastic. Although it’s a solid fountain, I’d spend less and grab a stainless steel model.
Fountains We Don’t Recommend
Photograph: Molly Higgins
Petcube Ceramic Pet Water Fountain for $90: I really wanted to love this fountain; although its basin is plastic, it had a ceramic top, which is more hygienic than plastic (plus, I had never tested a ceramic model before), and the brand makes some of my favorite pet cameras. However, setup was a bit confusing; it took a long time to get the base charged to power the fountain’s water flow; and the sensor to start the water flow can only be triggered from one side, making placement awkward. After a few days, it would only run while plugged in. Soon, its stream was barely strong enough to reach the top, and after just over a week, it stopped working altogether. Also, it’s overly expensive for what it is.
Photograph: Molly Higgins
Cat Mate 3-Level Pet Fountain for $28: This tall automatic Cat Mate fountain sets itself apart with three tiers for cats who like to drink at every level. Cleaning the motor requires disassembly using tools and extended soaking. Because of the long distance the water has to travel, it evaporates quickly and needs to be refilled about every other day. Plastic also harbors bacteria, and previous plastic models I’ve owned have had mold issues. The basin is quite large and sits flat. Because of this, some debris lingers in the front rather than flowing to the filter system behind. The plastic material and lack of ergonomic gravity design caused this fountain to be dirtier than others.
Photograph: Molly Higgins
Whisker City Free Fall Cat Fountain for $30: This huge fountain is better suited for dogs, with its 150-fluid-ounce bowl and waterfall design. Although the basin has a small splash pad to help offset the waterfall noise, this was one of the loudest fountains I tested. The evaporation from the waterfall-like system also caused me to refill it every other day. Because of the structure of the fountain, my cats had to bend their head at an awkward angle. They tended to avoid drinking from the basin because of that, and their heads got slightly wet from the splatter of the waterfall. The basin is also not angled, so crumbs and debris sit at the bottom of the bowl.
Photograph: Molly Higgins
Petkit EverSweet Solo SE for $30: This very simple, straightforward fountain has a square-shaped body, is translucent to easily see water levels from the outside, and has a nearly silent 25-decibel cordless pump to circulate water from the basin to the top level, where 2 ounces of water are always available for drinking, even in case of power failure. The basin sits on a base and all parts easily detach, making it easier to clean. This fountain doesn’t have multiple modes or an associated app—you’ll have to check water levels manually. I noticed this fountain didn’t keep water as cold as some of the others, and because of the design of the top, debris often pooled in the dipped areas, which required more frequent cleaning.
I used each fountain for a week as my cats’ main source of water. As mentioned, I noted the ease of setup, evaluated parts and filters, and generally compared the various types of water fountains—spigot, bubbling, or waterfall. Some flows were continuous and some were intermittent (my cats didn’t prefer intermittent). Cats may also be intrigued and want to play with the machine rather than drink, so be sure to give them time and keep another water source around until they are fully adjusted to the new gadget.
Cats sometimes struggle to consume enough water, which can lead to potentially lethal UTIs and blockages, especially in male cats. This is one of the reasons vets are moving toward encouraging owners to give their cat at least a partially wet-food diet, as this helps them consume more moisture, especially since cats don’t naturally drink as much as dogs. Also unlike dogs, cats are generally quite particular in their likes and dislikes, and cats can see stagnant water as potentially harmful. (If the cat was in the wild, stagnant water has more potential for harmful bacteria). Cats are more drawn to moving water in nature, and these fountains help encourage them to drink more by emulating what they’re naturally drawn to.
While automatic water fountains are better for cats’ overall water consumption, they do require a bit more work and money. Rather than refilling a bowl, these take a little elbow grease—but it’s worth it for your cat’s health. Along with routine refilling and cleaning, you’ll need to disassemble the fountain to clean all parts, including using a brush for the bowl and tubes. You may also have to disassemble the motor to deep-clean mineral buildup. There are different types of filtration cartridges in specific shapes for the brand’s fountains, which require you to buy and change out filters, usually monthly but sometimes more often.
What to Look for in a Fountain
Let’s be honest, a lot of these fountains are pretty much the same. I looked especially for the overall design—I am a fiend for stainless steel because of the potential of porous plastic harboring harmful bacteria. I also favor a wide reservoir without high sides to help reduce the chance for whisker fatigue. I prefer fountains that have a small basin reservoir of water available at all times, in case of low water levels or power failure. I took into account ease of setting up, refilling, and cleaning, as well as overall design. And of course, there were some that my cats took to straight away, and some they didn’t seem to favor as much.
After prolonged testing, I now look for these three things and encourage you to as well: a cordless pump for easier (and safer) cleaning, hygienic stainless-steel construction, and a window to monitor water levels (especially if it’s not connected to an app).
Power up with unlimited access to WIRED. Get best-in-class reporting and exclusive subscriber content that’s too important to ignore. Subscribe Today.
Stocks @ Night is a daily newsletter sent after hours, giving you a first look at tomorrow and a last look at today. Sign up for free to receive it straight to your inbox. Here’s what CNBC TV producers saw as the S&P 500 hit another record and what’s on the radar for the next session. McDonald’s, the “Good Food Fast” restaurant chain giant, reported Thursday morning. The results are reported on “Squawk Box” with Becky Quick, Andrew Ross Sorkin and Joe Kernen. We’ll have a special report from CNBC’s Eunice Yoon on how McDonald’s is doing in China at 6 a.m. ET. Shares have lost 13% in the last three months. The stock is down 17% from its early March peak. MCD 3M Mountain McDonald’s Stocks in the Last Three Months Corning and Nvidia “Squawk Box” and CNBC TV’s Kristina Partsinevelos broke the big story Wednesday morning about Corning building three new factories to produce optical technologies exclusively for Nvidia. Corning closed 12% higher on Wednesday. Shares rose 20% in the morning. The stock hit a new high before giving up some of its gains. The stock has more than doubled so far in 2026. Nvidia gained nearly 6% in the session. The stock is 4% below its April high. On Thursday’s “Mad Money” with Jim Cramer, we hear from both CEOs: Jensen Huang of Nvidia and Wendell Weeks of Corning. Citigroup’s Jane Fraser, CEO of the banking giant, will join Sara Eisen and Carl Quintanilla on “Movers” on Thursday at 11:30 a.m. Thursday is investor day for Citigroup. The stock is up 9% so far in 2026. The stock is down 5.6% from its April 21 peak. C YTD-Mountain Citigroup in 2026 Big Data April private ADP payrolls showed a gain of 109,000, beating Street expectations. However, ADP chief economist Nela Richardson warned that more low-paying part-time jobs appear in this figure. On Thursday at 8:30 a.m. we will receive unemployment claims data with the “Squawk Box” team. Becky Quick, Andrew Ross Sorkin and Joe Kernen are on the case and will have the data and immediate market response. The Dow Jones consensus estimate for initial jobless claims is 206,000. The big labor market report for April will be released on Friday morning. It will also be featured on “Squawk Box.” Prediction market Kalshi shows that 67% of bettors believe the number will be over 60,000 jobs created. 57% see a figure of over 80,000, while 39% demand more than 100,000 jobs. Finally, 23% said the number would be over 120,000 jobs. For more information about prediction markets, see . Block reports after the bell The payment services provider’s stock has gained 26.5% in the last three months. Block stocks are down 14% from the August high. Back in February, CEO Jack Dorsey announced that he would lay off about half of the workforce because he could achieve more with artificial intelligence. In a post on the social media platform, he called it “one of the most difficult decisions in the company’s history,” potentially leaving some wondering: What could have been more difficult? The stock is up 36% since the announcement in late February. We will announce details of the company’s earnings and immediate stock reaction on Thursday at 4 p.m. XYZ 3M Mountain Block shares in the last three months CoreWeave The Garden State-based AI cloud company reports after the bell. CoreWeave shares have gained 53% in the last three months. The stock is down 26% from its June high. CNBC TV’s Kristina Partsinevelos will present the numbers and stock reaction at 4 p.m. Consumer Expectations Read the Great American Consumer when the New York Federal Reserve releases consumer expectations data at 11 a.m. The State Street SPDR S&P Retail ETF (XRT) is up 4% in a month but has fallen more than 2% since the start of the Iran war, when gasoline prices began to rise. The ETF is 7% away from its January high. The S&P consumer staples sector has gained 13.7% in a month. Since the start of the war it has increased by 7.4%. The S&P consumer staples sector has gained nearly 2% in a month. It has lost 5% since the war began. Disclosure: CNBC and Kalshi have a business relationship that includes customer acquisition and minority ownership. Markets change and headlines fade, but the fundamental principles for building long-term wealth remain unchanged. Join us for our third CNBC Pro LIVE, where investors of all backgrounds – from financial professionals to average Joes – come together to break out of the noise and get actionable strategies for smarter, more disciplined investing. No matter where you start, you’ll leave with clearer thinking and stronger strategies. Enter your email address here to receive a discount code.
It’s been two years since Bella Hadid launched Orebella, and this week, the model dropped a new range of body and hair perfume mists. To celebrate, she stepped out for a brand dinner in Los Angeles with some of her nearest and dearest, and looked like the human embodiment of her airy summer spritzes.
She might have skipped out on Coachella, but Bella embraced the boho-iest waves imaginable, with a halo of light blonde, clavicle-length corkscrew curls. Flowers dappled the mid-lengths, with a real ’70s feeling volume throughout. Glam followed the same rhythm as the rest of her groovy look, as the model wore a full fit from Chloé: a flowing cream-and-white lace mini dress, some Chloé clogs, and a matching bag.
Over the years, Hadid has dipped in and out of the blonde tones—in 2019, she embraced a natural dirty blonde with wavy textures. In 2022, she sought out hairstylist Jessica Gillin and colorist Jenna Perry for a brief spell with waist-length, “Aspen Blonde” hair. But really, we saw her rise to supermodel stardom as a knockout brunette.
It’s almost a year exactly since Bella returned to her natural tones, a shade she debuted at the 2025 Cannes Film Festival. At first, it was a sensual honey blonde, but across the last few months, she’s upped the ante. Working with her go-to colorist Jacob Schwartz, they lightened it up to a more bombshell kind of blonde, with natural-looking highlights for the Victoria’s Secret fashion show.
Photo: Tiziano Raw
Bella’s natural hair texture is quite wavy, falling in loose, voluminous waves. It’s an effortless look she returns to when hanging out on the ranch in Texas or keeping things casual in LA, with the addition of bangs, on occasion. On the red carpet, though, she’ll often opt for a sleek up-do or tousled, lived-in layers. Hairstylist to the stars Evanie Frausto is usually in charge of the look.
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.
Courtesy of Miko
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.