Barbie maker Mattel, OpenAI tie up to make AI-powered toys

Barbie maker Mattel, which also makes Hot Wheels and UNO cards, has signed up with ChatGPT maker OpenAI to use its artificial intelligence (AI) tools to design toys and other products .

The partnership, announced on Thursday, marks the first time OpenAI has tied up with any major toy maker.

The financial terms of the deal were not disclosed, though OpenAI and Mattel have said that they are committed to developing enriching, safe, and age-appropriate experiences for fans worldwide.

As per the deal, Mattel will leverage OpenAI’s advanced generative AI tools—including ChatGPT Enterprise—to develop new AI-powered toys and games, with the first such product expected to roll out later this year.

The initiative aims to create dynamic, personalized play experiences for children and families, while retaining a strong focus on safety, privacy, and responsible innovation.

“Each of our products and experiences is designed to inspire fans, entertain audiences, and enrich lives through play. AI has the power to expand on that mission and broaden the reach of our brands in new and exciting ways,” said Josh Silverman, chief franchise officer of Mattel.

OpenAI said in a release that the partnership between Mattel and OpenAI is not limited to consumer products but stretches across business operations to accelerate product development, spark creative ideation, and drive companywide transformation.

The move is part of Mattel’s broader strategy to become a digital-first entertainment company aligned with consumer habits and in tandem with competition from tech-savvy rivals.

OpenAI’s chief operating officer, Brad Lightcap, said, “With OpenAI, Mattel has access to an advanced set of AI capabilities alongside new tools to enable productivity, creativity, and company-wide transformation at scale.”

The alliance comes at a time when global toy makers are facing a challenging environment as consumers are tightening discretionary spending amid economic uncertainty.