Mattel has announced a strategic partnership with OpenAI to develop AI-powered toys and games, leveraging OpenAI’s generative AI capabilities to create innovative play experiences. The collaboration will combine Mattel’s renowned brands, including Barbie, Hot Wheels, and American Girl, with OpenAI’s technology to produce new products and experiences that emphasize innovation, privacy, and safety.
Key Details of the Partnership
The partnership aims to bring the “magic of AI” to age-appropriate play experiences while ensuring safety and security. Mattel plans to utilize OpenAI’s business tools, including ChatGPT Enterprise, to enhance product development and business operations. OpenAI’s COO, Brad Lightcap, expressed enthusiasm about working with Mattel to introduce AI-powered experiences into its iconic brands.
Mattel’s Business Strategy
This move is part of Mattel’s broader strategy to stay ahead in the AI curve and revitalize its business amid flagging toy sales. The company has been diversifying its entertainment offerings, with a slate of films planned based on its popular toy brands, following the success of its 2023 “Barbie” movie. Mattel has also been navigating economic uncertainty, pausing its full-year guidance for 2025 due to tariff-driven uncertainty and planning to raise prices on some goods to offset added costs.
The collaboration between Mattel and OpenAI highlights the growing impact of AI across various industries. As generative AI tools become increasingly sophisticated, companies are exploring their potential beyond automating mundane tasks, seeking to enhance creativity and productivity. This partnership is expected to yield its first product later this year, marking a significant step in Mattel’s AI integration journey.
