China’s next interface: AI companions
Fusing tactile design with emotional intelligence, China’s AI companion boom is reshaping global norms in consumer tech, monetization, and intimacy engineering.
China leads the AI companion boom, fusing plush toys with generative AI to tap into an $11 billion domestic market by 2026.
Products like Ropet and BubblePal show how China's startups are integrating GPT-powered personality engines into temperature-controlled, tactile shells.
Local VCs, including traditionally cautious investors like GSR Ventures, are backing emotion-first tech aimed at Gen Z and single adults.
The next battlegrounds: emotional AI regulation, data privacy, and how long users will pay for friendship.
At 10 PM, as you shut your laptop, a fluffy, round creature in the corner of your desk blinks its sleepy eyes. You stroke its head, feeling a gentle warmth and a furry texture as it emits a soft purr. This isn't a scene from a sci-fi film; it's the rapidly emerging reality in China's tech scene, where AI companions are evolving from simple chatbots into sophisticated, physical "pets."
AI companions—digital or robotic entities designed to offer emotional support—have gone from sci-fi fantasy to serious business.
While the U.S. and Japan pioneered early conversational bots, China is now the fastest-moving hub for AI companions, propelled by generative AI, a maturing toy-tech ecosystem, and deep emotional demand from a mobile-first generation.
China’s emotion economy takes shape
The concept of companionship tech is colliding with China's booming "Chao Wan" (trendy toys) industry.
Pop Mart’s market cap surged from HKD 27.3B to 366B within 18 months thanks to blind box collectibles, showing clear demand for emotionally charged, character-driven products.
Layer AI on top, and the result is a fast-emerging hybrid: "AI Chao Wan" (AI-powered collectible companions).
Startup MoeFriend’s Ropet epitomizes this fusion. The device resembles a plush pet, emits body warmth at 37 °C, and mirrors user emotions through facial tracking, GPT-powered dialogue, and expressive LED “eyes.”
In January 2025 alone, Ropet raised over USD 1 million on Kickstarter, selling 900+ units—70% to female buyers, many in their 20s and 30s.
BubblePal, developed by Haivivi, took a different tack—selling 250,000 clip-on AI plushies in under 12 months.
These toys talk, react to touch, and use pre-trained models to simulate childlike dialogue. Most sales came through direct-to-consumer channels, often via social video platforms like Douyin.
Capital chase and changing VC logic
The surge in AI companion products has turned even skeptical VCs into believers. Zhu Xiaohu, GSR Ventures’ managing partner, previously known for his caution on "embodied AI," led a seed round for Fuzozo, a new AI pet startup from Shanghai.