Agora launches AI device kit for smart toys and hardware

The Convo AI Device Kit shifts the conversational AI bottleneck from cloud-only processing to an integrated edge-hardware solution. By providing pre-integrated chipsets, Agora significantly reduces the engineering friction for OEMs attempting to embed low-latency voice agents directly into physical hardware rather than relying on complex, multi-vendor software stacks. This move positions Agora as a critical infrastructure layer in the smart toy market, which is leaning heavily into AI-driven emotional companionship. As hardware manufacturers search for ways to differentiate static toy IP, watch for rising adoption rates among educational robotics firms and the deployment of purpose-built LLM 'eye' displays as a standard feature in connected devices.

The global smart toy market is projected to reach $30.5 billion in 2026, growing at a 21.9% compound annual rate as demand for AI-driven personalized learning increases, per Research and Markets in early 2026. This growth is increasingly driven by the 'emotional economy,' where educational robots and digital companions are used to bridge the gap between traditional play and interactive learning. Figures from Fortune Business Insights in May 2026 value the broader smart toy segment at USD 25.7 billion, fueled by parent demand for STEM-focused tools that adapt to a child’s dynamic learning pace.

Agora’s launch follows its report of $37.7 million in Q1 2026 revenues, marking its sixth consecutive quarter of GAAP profitability. Per its May 2026 earnings statement, the company is seeing accelerated growth in real-time engagement as it shifts toward deep AI integration, including its Agent Studio no-code platform. While the company noted some gross margin pressure due to conversational AI products remaining at a sub-scale stage, research and development investment rose to $14.4 million to support these initiatives. Historically, Agora has deepened its AI stack through a 2024 partnership with OpenAI to integrate the Realtime API, which allows developers to build low-latency voice experiences without complex custom networking code.

At the manufacturing level, partnerships like the one with RiseLink (and previously Beken) are intended to deliver all-in-one toolkits for IoT devices. These efforts are already seeing commercial application; for example, Robopoet’s Fuzzoo companion robot, showcased at CES 2026 and MWC 2025, utilizes Agora’s technology to provide real-time emotional support and personalized interactions. Industry observers, per IMARC Group in 2026, indicate that robots now hold roughly 40% of the smart toy market share, underscoring the shift toward hardware that can process speech and recognize faces autonomously.