I'm trying to think of how much it would cost to create an AI Furby-Like Creature.

I'm thinking Trisquel Mini would be a good OS, but am not sure. There are basically three programs the creature would have to run.

1:  Speech to Text.
2:  AI Interpretor from Alice.bot
3:  Text to speech.

I know there is Free Software for text to speech and Interpretors for AIML.

I am not sure if there is a Free Software speech to text.

Has anyone ever created such a thing as this before? How much processing power would such a creature need, considering it would likely need to run a GNU/Linux OS Distribution?

I remember when the Furby came out, I thought that's what it did. At least, more or less until I got one. I guess I always wondered, with computers getting cheaper and AI software available with no cost and complete freedom; why someone hasn't made such a creature.

I think it would likely be a hit. About the only thing I can guess is that the processor would still have to be at least an Intel Atom or so and that such a thing would make the creature cost more than most people would want to pay.

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