Anki, the maker of cute AI-powered robots, is preparing to lay off all company staff after failing to secure enough funding.

"It is with a heavy heart to announce that Anki will be letting go of our employees, effective Wednesday," the San Francisco-based startup said in a statement on Monday.

"A significant financial deal at a late stage fell through with a strategic investor and we were not able to reach an agreement," the company added.

Anki announced the news after Recode reported that the whole company was shutting down, and letting go of close to 200 employees, despite having raised over $200 million in venture capital funding over the last nine years. The startup was founded back in 2010 with the goal of creating intelligent home robots, starting with toys. The company's first product, the Anki Drive, was an AI-powered miniature racing car.

It then went on to create Cozmo, a programmable bot for kids that can fit in your hand, and Vector, another bot that can respond to voice commands. Anki's products have been popular enough to ship millions of units across the world. In 2017, it generated almost $100 million in revenue. But clearly, sales weren't enough to keep the startup afloat.

So far, Anki hasn't commented on what will happen to the company's technology or its customer support. But according to Recode, the startup has encountered acquisition interest from companies such as Microsoft, Amazon, and Comcast.

"We're doing our best to take care of every single employee and their families, and our management team continues to explore all options available," Anki said in the company's statement.