AI-based services, Studio Ghibli images, and now AI-powered toys, games including the childhood staples like Barbie and UNO?
Barbie-maker Mattel has teamed up with Sam Altman led company OpenAI to develop toys and games with artificial intelligence. The first of the AI-powered products is slated to hit the shelves later this year, the company announced on Thursday.
Mattel, which is also known for their iconic Hot Wheels and UNO cards, plans to “bring the magic of AI to age-appropriate play experiences with an emphasis on innovation, privacy, and safety,” the company said in a statement.
Toy industry in turmoil
The Mattel-OpenAI partnership comes as toy manufacturers face sluggish demand, with consumers tightening their budgets amid the economic uncertainty triggered by US President Trump’s evolving trade policies.
Several toy manufacturers in the US have slowed innovation and faced rising production costs due to the tariffs, with many postponing launches, laying off employees to navigate the uncertain times, reported AP.
Over the last year, Mattel has relied on producing films, TV shows and mobile games based on its products such as Hot Wheels and Barbie to offset a slowdown in its core toy business, reported Reuters.
According to a Wall Street Journal report, Trump’s raising of tariffs on China to 145% in April 2025 also triggered a crisis for doll makers—many halted production or raised prices, with authorities granting a temporary reprieve. Consumers are expected to see fewer and more expensive dolls this Christmas, as most dolls sold in the US are made in China.
‘…transform how we create, imagine, innovate’
As part of the partnership, Mattel will also use tools like ChatGPT Enterprise to boost creativity and streamline operations across the company.
By tapping into OpenAI’s AI capabilities, Mattel aims to reimagine how fans can experience and interact with its cherished brands, with careful consideration to ensure positive, enriching experiences, the Sam Altman led company said.
“With OpenAI, we’re unlocking tools that will transform how we create, imagine, and innovate—both for kids and behind the scenes,” said OpenAI COO Brad Lightcap.
Mattel to raise prices
Last month, Mattel withdrew its annual forecast and said it would raise prices on some products sold domestically in a bid to mitigate higher supply chain costs.