Mattel and OpenAI to Launch "AI-powered" Barbie, Hot Wheels, and More - Know DEETS Here

Mattel announced today that it has entered a strategic agreement with OpenAI, joining forces to introduce AI-enhanced play across its biggest brands, Barbie, Hot Wheels, Uno, and more. The companies say the first AI-driven product will debut before the end of 2025.

The deal reshapes both product lines and internal operations. Mattel will integrate ChatGPT Enterprise to help its design, marketing, and R&D teams generate ideas faster and more efficiently. Meanwhile, OpenAI will supply its models and tools to power play experiences designed for kids, with strong safety and privacy measures in place.

Josh Silverman, Mattel’s Chief Franchise Officer, said AI offers fresh ways to extend the legacy of its iconic brands and better engage fans through interactive experiences. OpenAI COO Brad Lightcap called it a “company-wide transformation,” as employees and products alike gain access to advanced AI capabilities.

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This move comes as toy sales soften amid shifting consumer behavior and rising costs. In the past year, Mattel has withdrawn its year-end forecast, boosted prices on some U.S. products, and ramped up cost-saving efforts to the tune of $80 million. To offset slower toy demand, the company has leaned heavily into entertainment, such as movies, TV shows, and mobile titles tied to its brands.

Analysts view this partnership as a bold attempt to future-proof Mattel. Its main competitor, Hasbro, has experimented with connected and voice-enabled toys, but none have such advanced AI backing. With OpenAI’s model and data infrastructure, Mattel could accelerate innovation and create play experiences that evolve with users in real time.

Parents and privacy advocates, however, remain cautious. Early smart toys, like Hello Barbie from 2015, sparked privacy concerns. This time, both companies promise “thoughtful” implementation, though details on data collection, storage, moderation, and consent remain slim. Observers note that building safe AI for kids requires extra care and resources.

Learners and families might soon interact with toys that remember names, recall past conversations, and customize responses. These features, however, depend heavily on how Mattel and OpenAI balance smart interactions with security. The first wave of AI toys could ship as soon as Q4 2025.

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