Mattel Partners with OpenAI for AI-Powered Toys, Aims for 2023 Launch

Ticker BuzzThursday, Jun 12, 2025 9:07 pm ET
1min read

Mattel, the manufacturer of Barbie dolls, has announced a strategic partnership with OpenAI, aiming to develop AI-powered toys and games. The collaboration is set to launch its first AI product by the end of this year. Mattel, one of the world's largest toy companies, is known for producing iconic toys such as Barbie dolls, Hot Wheels cars, and UNO cards. The company emphasizes that OpenAI's technology will bring the magic of AI to gaming experiences, with a focus on safety, privacy, and security as core aspects of this partnership.

Mattel believes that integrating AI with toys can design, develop, and launch innovative toys for global fans, leveraging new technologies to solidify the company's leadership in innovation and reimagine new forms of gaming. This initiative comes at a time when toy manufacturers are facing challenges due to weak demand, as consumers cut back on spending to cope with the economic impacts of the fluctuating trade policies of Trump.

Mattel also plans to integrate OpenAI's advanced AI tools, such as the enterprise version of ChatGPT, into its business operations to enhance product innovation. Brad Lightcap, the Chief Operating Officer of OpenAI, stated that with OpenAI's tools, Mattel can gain a suite of advanced AI capabilities and new tools to achieve significant productivity gains, creativity boosts, and overall transformation across the company.

In recent years, Mattel has relied on the intellectual property of products like Hot Wheels and Barbie to create movies, TV shows, and mobile games, offsetting the slowdown in its core toy business. Last month, Mattel withdrew its annual performance guidance and announced plans to raise prices for some of its products to mitigate the impact of rising supply chain costs.

Josh Silverman, Mattel's Chief Licensing Officer, highlighted that the products developed through this collaboration will include not only traditional toys but also high-tech interactive experiences. He also noted that Mattel retains control over the development of all products, ensuring that the brand and design remain in-house.

This partnership marks OpenAI's entry into a new domain, as the AI giant has not previously collaborated with a toy manufacturer. However, this move aligns with OpenAI's overall strategy of establishing a presence across various industries. The collaboration is expected to bring a new wave of innovation to the toy industry, leveraging AI to create more engaging and personalized experiences for children.