They’re stuffed animals. They’re also AI chatbots.

Curio is a company that describes itself as “a magical workshop where toys come to life.” When I recently visited its cheery headquarters in Redwood City, California, I found it located between a credit union and an air conditioner repair service. I stepped inside to meet the company’s founders, Misha Sallee and Sam Eaton. And also Grem, a fuzzy cube styled like an anime alien.

Curio makes chatbots wrapped in stuffed animals. Each of its three smiling plushies has a back zipper pocket that hides a Wi-Fi-enabled voice box, linking the character to an…