Two years ago, the project was still called “The Marshmallow Project” and was operating away from the spotlight. At the time, Maddyness was able to confirm several details about the startup Cédric O was preparing: an interactive audio device designed for children, capable of conversing with them using generative AI and involving them in games and stories. Joining Cédric O in the venture was Flore Cousin, his co-founder, a consumer marketing expert and former employee of fintech company Alma.

Two years later, the project has become Mallow: €11 million raised from investors including Balderton Capital, Daphni and Motier Ventures, new offices, more than 30 employees and, above all, a first product now on the market.

Mallow comes in the form of a screen-free speaker designed for children aged 4 to 10. Each game, quiz or adventure is associated with a figurine representing a character. Once the figurine is placed on the device, the experience begins. Using artificial intelligence, the speaker understands what the child says, responds, guides them or asks questions to test their knowledge on various topics.

Mallow also offers interactive adventures in which the child becomes the hero and moves the story forward through their answers and choices. “In the age of social media and screens everywhere, we want to offer our children a different educational and entertaining experience. We also strongly believe in the power of voice,” explains Cédric O.

For the past year, the startup has been testing its product with more than 300 children and their families. To develop its various games and quizzes, it has notably partnered with French game publisher Nathan and the Miraculous franchise. More partnerships are expected to be announced in the coming weeks. “We are at the crossroads of cognitive science, entertainment and AI. However, we consider ourselves more of an edtech company,” says Cédric O.

To enable its speaker to interact with children, Mallow has developed its own system combining several generative AI technologies. Without disclosing all the models it uses, the startup says it relies in particular on Mistral AI, a company Cédric O knows well. As a shareholder in the company, he was involved in its launch alongside its three co-founders.

Having an artificial intelligence interact with children aged 4 to 10 inevitably raises questions about the safety of these exchanges. Mallow says it has incorporated several layers of protection into its architecture to control interactions and AI-generated responses. These safeguards are subject to regular and “intensive” testing, the startup says. From the outset, Mallow has also surrounded itself with a scientific advisory board including psychology experts to work on children's use of the product and development.

Mallow's model is reminiscent of some story boxes already on the market, such as Germany's Tonies: its users also place figurines on a speaker to trigger different audio content. Mallow, however, claims a major point of difference: thanks to AI, children do not simply listen to a pre-recorded story but can interact with the game using their voice.

Following its launch in France, Mallow is already preparing to expand internationally. “We are targeting a launch in the U.S. market by the end of next year,” says Flore Cousin. Sold through Mallow's website and on Amazon for around €120, the speaker is currently manufactured in China. In the long term, the startup wants to bring part of its production back to Europe.