I've seen several attempts even on HN of the LLM meets Teddy Ruxpin (or more accurately AG Talking Bear) but most of them offloaded the AI to some off-site servers.

I’d like to think that most parents would be weary of handing their children what basically amounts to a tape recorder that siphons all the data off to a large corporation.

OTOH, a completely local one (LLM + VAD + Speech Rec) would be a fun little thing to build.

https://en.wikipedia.org/wiki/AG_Bear