Barbie maker Mattel partners with OpenAI to launch AI-powered toys in 2025

Mattel has announced a partnership with artificial intelligence firm OpenAI to develop a new range of AI-integrated toys and games, with its first product expected to debut later this year.

The US-based toy manufacturer, known for popular brands such as Barbie, Hot Wheels and Uno, said the collaboration would focus on creating age-appropriate play experiences that integrate artificial intelligence while prioritising privacy and safety standards. The company aims to incorporate AI in a way that aligns with its broader innovation strategy.

This development comes amid ongoing challenges for the global toy industry, with consumer spending remaining cautious in the face of economic uncertainty and policy shifts under President Trump's administration. Mattel, like many other manufacturers, has been navigating reduced demand and rising operational costs.

In addition to product development, Mattel plans to utilise OpenAI’s enterprise tools—such as ChatGPT Enterprise—across its internal operations. According to the company, these tools will be used to streamline workflows, support product development, and drive organisational change.

"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," said OpenAI Chief Operating Officer Brad Lightcap in a statement.

Mattel has increasingly leaned on its entertainment assets—including films, television content, and mobile games—to help counterbalance a slowdown in traditional toy sales. Its strategy has included expanding brand presence beyond the toy aisle.

The company recently withdrew its annual guidance, citing economic pressures and increased supply chain costs. It also confirmed plans to raise prices on selected products within the domestic market to address financial strain.

The first AI-enhanced toy developed through the Mattel-OpenAI collaboration is expected to be unveiled in the latter half of 2025.

In other news, OpenAI has officially launched o3-pro, a new artificial intelligence model the company is hailing as its most advanced to date. The latest addition to the o3 family is now available to ChatGPT Pro and Team subscribers, with rollouts for Enterprise and educational users expected in the coming days.

(With inputs from Reuters)