Industry News | 6/12/2025
Mattel Partners with OpenAI to Integrate AI into Iconic Toy Brands
Mattel has announced a strategic partnership with OpenAI to incorporate artificial intelligence into its well-known brands, including Barbie and Hot Wheels. This collaboration aims to enhance product interactivity and streamline internal operations, with the first AI-powered products expected to be revealed later this year.
Mattel Partners with OpenAI to Integrate AI into Iconic Toy Brands
Toy manufacturer Mattel has entered into a strategic partnership with OpenAI to embed artificial intelligence across its popular brands, such as Barbie and Hot Wheels. This collaboration will utilize OpenAI's advanced technologies, including large language models and ChatGPT Enterprise, to innovate both consumer-facing products and internal workflows.
Goals of the Partnership
The partnership aims to develop next-generation AI-powered toys and experiences, enhancing interactivity and engagement for consumers. Potential applications include digital assistants based on Mattel characters and making existing games like Magic 8 Ball and Uno more interactive. Specific details about the initial AI-enhanced products are yet to be disclosed, but Mattel's Chief Franchise Officer, Josh Silverman, has indicated that new offerings will encompass both physical toys and digital experiences.
Focus on Safety and Privacy
A significant aspect of this collaboration will be ensuring safety, privacy, and security in all AI-powered experiences. Mattel is committed to maintaining the trust it has built with parents and families over its 80-year history, emphasizing that all products will be age-appropriate. Furthermore, Mattel will retain full control over its intellectual property, clarifying that it is not licensing its IP to OpenAI as part of the deal.
Internal Integration of AI
In addition to consumer products, Mattel plans to integrate OpenAI's tools into its internal operations, specifically using ChatGPT Enterprise to enhance creativity and streamline product development. This initiative aligns with Mattel's broader cost-saving goals, as the company aims to explore AI applications to support a $200 million cost-savings target by 2026.
Broader Vision for Mattel
This strategic move reflects CEO Ynon Kreiz's vision of transforming Mattel from a traditional toy manufacturer into a comprehensive entertainment enterprise, which includes films, television shows, and mobile games based on its extensive portfolio. The collaboration with OpenAI is seen as a significant step in embedding AI technology across various industries and enhancing creative design workflows.
Industry Impact
The toy industry is witnessing a trend where major players like Mattel and Hasbro are increasingly adopting AI to innovate and gain a competitive edge. This partnership is expected to influence how AI is integrated into children's play and entertainment, potentially setting new standards for interactive experiences. As the first co-developed products are unveiled, the industry will closely monitor the impact of this collaboration on the future of play and family entertainment.