12th June 2025 – (California) Mattel announced a partnership with OpenAI on Thursday to develop AI-enhanced toys and games, with plans to release its first AI-powered product later this year. Known for iconic brands like Barbie, Hot Wheels, and Uno, the toymaker aims to deliver “age-appropriate play experiences” focused on innovation, privacy, and safety.
The collaboration comes as toy manufacturers face subdued demand, with consumers cutting back on spending amid economic uncertainty tied to shifting U.S. trade policies.
Mattel also revealed it would incorporate OpenAI’s advanced tools, including ChatGPT Enterprise, into its operations to drive product innovation and enhance company-wide productivity. “With OpenAI, Mattel gains access to cutting-edge AI capabilities to enable transformation at scale,” said Brad Lightcap, OpenAI’s Chief Operating Officer.
To counter slowing sales in its core toy business, Mattel has diversified into films, TV shows, and mobile games tied to its popular brands. Despite these efforts, the company recently withdrew its annual forecast and announced price increases on some domestic products to offset rising supply chain costs.
