Matthew Panzarino has more:

A teaser video just dropped on the ToyTalk site that shows a teddy bear chatting with a kid via an iPad. The video is short, but the promise is long and the talent is strong.

ToyTalk was founded by CTO Martin Reddy, formerly of the Artificial Intelligence Center at SRI international (the company that  spawned Siri) and CEO Oren Jacob, another Pixar alum who worked on tech for Toy Story, Toy Story 2, Bugs Life and Finding Nemo.

This looks amazing.