Why investors are backing Applied Brain Research’s on-device voice AI approach.
Updated
January 28, 2026 5:53 PM
Plastic model of a human's brain. PHOTO: UNSPLASH
Applied Brain Research (ABR), a Canada-based startup, has closed its seed funding round to advance its work in “on-device voice AI”. The round was led by Two Small Fish Ventures, with its general partner Eva Lau joining ABR’s board, reflecting investor confidence in the company’s technical direction and market focus.
The round was oversubscribed, meaning more investors wanted to participate than the company had planned for. That response reflects growing interest in technologies that reduce reliance on cloud-based AI systems.
ABR is focused on a clear problem in voice-enabled products today. Most voice features depend on cloud servers to process speech, which can cause delays, increase costs, raise privacy concerns and limit performance on devices with small batteries or limited computing power.
ABR’s approach is built around keeping voice AI fully on-device. Instead of relying on cloud connectivity, its technology allows devices to process speech locally, enabling faster responses and more predictable performance while reducing data exposure.
Central to this approach is the company’s TSP1 chip, a processor designed specifically for handling time-based data such as speech. Built for real-time voice processing at the edge, TSP1 allows tasks like speech recognition and text-to-speech to run on smaller, power-constrained devices.
This specialization is particularly relevant as voice interfaces become more common across emerging products. Many edge devices such as wearables or mobile robotics cannot support traditional voice AI systems without compromising battery life or responsiveness. The TSP1 addresses this limitation by enabling these capabilities at significantly lower power levels than conventional alternatives. According to the company, full speech-to-text and text-to-speech can run at under 30 milliwatts of power, which is roughly 10 to 100 times lower than many existing alternatives. This level of efficiency makes advanced voice interaction feasible on devices where power consumption has long been a limiting factor.
That efficiency makes the technology applicable across a wide range of use cases. In augmented reality glasses, it supports responsive, hands-free voice control. In robotics, it enables real-time voice interaction without cloud latency or ongoing service costs. For wearables, it expands voice functionality without severely impacting battery life. In medical devices, it allows on-device inference while keeping sensitive data local. And in automotive systems, it enables consistent voice experiences regardless of network availability.
For investors, this combination of timing and technology is what stands out. Voice interfaces are becoming more common, while reliance on cloud infrastructure is increasingly seen as a limitation rather than a strength. ABR sits at the intersection of those two shifts.
With fresh funding in place, ABR is now working with partners across AR, robotics, healthcare, automotive and wearables to bring that future closer. For startup watchers, it’s a reminder that some of the most meaningful AI advances aren’t about bigger models but about making intelligence fit where it actually needs to live.
Keep Reading
From plush figures to digital pets, a new class of AI toys is emerging — built not around screens or sensors, but around memory, language and emotional awareness
Updated
February 5, 2026 2:00 PM
Spielwarenmesse toy fair. PHOTO: SPIELWARENMESSE
Spielwarenmesse in Nuremberg is the global meeting point for the toy industry, where brands and designers preview what will shape how children play and learn next. At this year’s fair, one message stood out clearly: toys are no longer built just to entertain, but to listen, respond and grow with children. Tuya Smart, a global AI cloud platform company, used the event to show how AI-powered toys are turning familiar formats into interactive companions that can talk, react emotionally and adapt over time.
The company’s central argument was simple but far-reaching. The next generation of artificial intelligence toys will not be defined by motors, sensors or screens alone, but by how well they understand human behavior. Instead of being single-function objects, smart toys for children are becoming systems that combine language models, emotion recognition and memory to support ongoing interaction.
One of the most talked-about examples was Tuya Smart’s Nebula Plush AI Toy. At first glance, it looks like a soft, expressive plush figure. Inside, it uses emotional recognition to change its LED facial expressions in real time. If a child sounds sad or excited, the toy’s eyes respond visually. It supports natural conversation, reacts to hugs and touch and combines storytelling, news-style updates and interactive games. Over time, it builds memory, allowing it to behave less like a gadget and more like an interactive AI toy that recalls past interactions.
Another example was Walulu, also developed using Tuya’s AI toy platform. Walulu is an AI pet built around personalization. It can detect up to 19 emotional states and speak more than 60 languages. It connects to major large language models such as ChatGPT, Gemini, DeepSeek, Qwen and Doubao. Through simple app-based controls, users choose traits like cheerful, quiet, curious or thoughtful. Those choices shape how Walulu talks and reacts. Instead of repeating scripts, it adjusts its tone and behavior over time. The result is not a novelty item, but an emotionally responsive AI toy that feels consistent in daily use.
Tuya also showed how educational AI toys can extend into learning and exploration. Its AI Learning Camera blends computer vision with interactive content. When it recognizes an object, it links it to cultural and learning material. If a child points it at a foreign word, it offers real-time pronunciation and translation. It can also turn drawings into digital artwork, encouraging active creativity rather than passive screen time. In this sense, AI toys for kids are becoming tools for learning as much as play.
These products point to a larger strategy. Tuya is not just making toys — it is building the AI toy development platform behind them. Through its AI Toy Solution, developers can design a toy’s personality, memory logic and behavior without training models from scratch. The system integrates with leading AI models and supports multi-turn conversation and emotional feedback, turning standard hardware into responsive AI companions.
The platform supports multiple development paths. Brands can use ready-to-market OEM solutions, add AI to existing products or build custom toys around their own characters. Plush toys, robots, educational tools and wearables can all become AI-powered toys without changing their physical design.
Because these products are made for children and families, safety is built in. Tuya’s system includes parental controls, conversation history review and content management. It supports standards such as GDPR and CCPA with encryption and data localization.
From a business standpoint, Tuya’s pitch is speed and scale. The company says its AI toy infrastructure can cut development time by more than half and reduce R&D costs by up to 50 percent. Its AIoT network spans over 200 countries and supports more than 60 languages, making global deployment of AI toys easier.
What emerged at Spielwarenmesse 2026 was not just a lineup of smart gadgets, but a clear shift in the category. AI toys are evolving into emotionally aware systems that talk, listen, remember and adapt. Their value lies not in sounding clever, but in fitting naturally into everyday life.
The fair did not present AI toys as a distant future. It showed them as products already entering the mainstream. The real question now is not whether toys will use AI, but how carefully that intelligence is designed for children.