Mattel is partnering with OpenAI to bring artificial intelligence to toys based on its most well-known brands, including Barbie, Hot Wheels, and Uno.
The companies say their first AI-powered product will arrive later in 2025. The goal is to make toys more interactive and engaging using AI tools.
First AI-Powered Toy Coming This Year
While full details haven’t been shared yet, Mattel says it will use OpenAI’s tools to make toys that respond better, feel smarter, and adapt to how kids play.
The company said in a press release that it plans to “bring the magic of AI to age-appropriate play experiences with an emphasis on innovation, privacy, and safety.”
Josh Silverman, Mattel’s chief franchise officer, told Bloomberg, “We plan to announce something towards the tail end of this year, and it’s really across the spectrum of physical products and some experiences. Leveraging this incredible technology is going to allow us to really reimagine the future of play.”
This technology could lead to talking toys based on Mattel characters or make games like the Magic 8 Ball and Uno more fun and responsive.
Mattel will retain full control over its products and intellectual property and is not licensing any of it to OpenAI, Silverman said.
More Than Just Toys
In addition to smarter toys, Mattel will use OpenAI tools like ChatGPT Enterprise to improve internal operations.
This comes at a time when fewer people are buying toys because of money worries and new import taxes put in place under President Donald Trump.
Mattel withdrew its annual forecast last month, citing weaker consumer spending. To cope, the company said it would raise prices on certain products in the U.S. and increase its annual cost-saving goal to $80 million, up from $60 million.
Mattel also said it would reduce promotional spending to manage expenses.
AI Is Part of Mattel’s Bigger Plan
The partnership is part of Mattel’s bigger move to do more than just make toys.
CEO Ynon Kreiz has been working to shift Mattel from just making toys to becoming a full entertainment company, using its characters in movies, TV, games, and now AI-based products.
OpenAI, known for developing ChatGPT, has been exploring partnerships with companies that own major intellectual property.
It has also met with Hollywood studios to demonstrate its text-to-video tool, Sora, though no studio deals have been finalized.
Brad Lightcap, OpenAI’s chief operating officer, told Bloomberg, “As we think about how AI builds tools that extend [creative design] capability, I think we’re very lucky to have partners like Mattel that we can work with to better understand that problem.”
The partnership between Mattel and OpenAI marks a fresh step in how toys are made, combining new technology with classic play.
Barbie is one of Mattel’s most famous brands and could be part of the AI-powered experiences, although no specific product has been confirmed yet.