How to create LLM-driven tiny gnome robots?

You know, like in the movie "The Borrowers". Since we have human-sized bipedals now, it shouldn't be impossible to create miniture robots that would act like living beings, right?

It would be amazing to have a small family of electric gnomes living with you. Doll house and everything. Kind of like real life Sims.

So realistically, how complex would it be to scale it all down to five, seven inches? Any startups working on this?