The companies will develop AI-powered toys and experiences, enhancing product design and supporting Mattel’s shift toward entertainment and tech-driven innovation.

Barbie and Hot Wheels maker Mattel Inc. (MAT) announced a strategic partnership with OpenAI to integrate artificial intelligence into its product development processes.

This collaboration aims to create AI-powered consumer experiences, utilizing Mattel's renowned brand portfolio and OpenAI's advanced technologies.

The alliance focuses on developing age-appropriate, AI-driven products that prioritize privacy, safety, and innovation. 

By using OpenAI's tools, such as ChatGPT Enterprise, Mattel plans to enhance its product development and creative ideation processes and ensure that new offerings meet the evolving needs of its audience. 

The company previously utilized AI tools like DALL·E 2 to design Hot Wheels models. This new partnership with OpenAI marks a big step in integrating AI into Mattel's operations.

The project is expected to yield a series of AI-powered products and experiences, with the first anticipated to be announced later this year. 

“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 Chief Operating Officer at OpenAI, Brad Lightcap.

According to a Bloomberg report, Mattel’s Chief Franchise Officer Josh Silverman suggested the partnership could include physical products and digital experiences. Under the agreement, Mattel would retain full control of its intellectual property.

The deal reflects Mattel CEO Ynon Kreiz’s broader strategy to evolve the company into a multimedia powerhouse, expanding beyond traditional toys into entertainment and gaming.

Meanwhile, OpenAI has been in talks with Hollywood to showcase its AI video tool, Sora, although no deals have been finalized yet.

Mattel stock has gained over 9% year-to-date and 11% in the last 12 months.

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