Barbie Goes High-Tech: Mattel and OpenAI Revolutionize the Toy Experience

The traditional toy manufacturer Mattel, known for iconic brands such as Barbie, Hot Wheels, and Uno, is planning a revolutionary step: alongside AI pioneer OpenAI, artificial intelligence is set to enter the world of toys. This exciting partnership was officially announced on Thursday and promises to redefine children's play behavior through innovative, safe, and age-appropriate experiences. Although the exact details have not yet been released, the first AI-supported product is expected later this year. A notable aspect of the collaboration is that Mattel, despite working with OpenAI, retains full control over its intellectual property rights. Josh Silverman, Chief Franchise Officer of Mattel, emphasized the company's autonomy in developing new products in a conversation with Bloomberg. Talks with OpenAI began late last year. Mattel not only intends to enhance its toy line but is also integrating OpenAI tools like ChatGPT Enterprise into its business processes. On Thursday, Mattel's shares rose 1.8% to $19.59 before slightly declining to $19.30 in after-hours trading. These developments come at a time when the toy industry is experiencing setbacks due to weaker demand and uncertainties in the trading environment. Mattel had withdrawn its annual forecast last month and announced price increases in the U.S. to offset tariff-related costs. Additionally, advertising activities are to be adjusted to achieve the annual cost-saving target, which was recently raised from $60 million to $80 million. A year full of challenges has prompted Mattel to focus more on entertainment to compensate for declining toy sales. Alongside Mattel, OpenAI is also pursuing an expansion of its technology, as demonstrated by its recent collaboration with coffeehouse giant Starbucks to develop efficiency tools for baristas.