- Barbie's parent company Mattel has teamed up with OpenAI.
- While details are still under wraps, the first AI-powered product is expected to drop later this year.
- The partnership comes as toy manufacturers face weaker demand due to tariffs.
Barbie might get an AI upgrade.
Mattel, the maker of Barbie, Hot Wheels, and Uno, has teamed up with OpenAI to bring artificial intelligence to its iconic toy brands, the companies announced on Thursday.
By using OpenAI's technology, Mattel will "bring the magic of AI to age-appropriate play experiences with an emphasis on innovation, privacy, and safety," the California-based toy manufacturer said in a press release on Thursday.
While details are still under wraps, the first AI-powered product is expected to drop later this year.
Mattel isn't handing over its intellectual property in the deal. The company retains full control over the products being developed, said Josh Silverman, Mattel's chief franchise officer, in an interview with Bloomberg.
Talks with OpenAI first began late last year, he added.
It's not just about the toys. Mattel will also incorporate OpenAI tools like ChatGPT Enterprise into its business operations, the toy company said.
Mattel shares rose 1.8% to $19.59 earlier Thursday, before edging down to $19.30 in after-hours trading.
Mattel and OpenAI did not respond to a request for comment from Business Insider.
Toy sales slow
The move comes as toy manufacturers face weaker demand, with consumers pulling back on spending amid uncertainty over President Donald Trump's trade policy.
Mattel withdrew its annual forecast last month and said it would increase prices for some products in the US to offset Trump's tariffs.
The company also said it would "adjust" its promotional activity to save costs. Its cost-savings target for the year rose to $80 million from $60 million, Anthony DiSilvestro, Mattel's chief financial officer, said in an earnings call last month.
Over the past year, Mattel has leaned on entertainment — including movies, TV shows, and mobile games — to help offset a slowdown in toy sales.
OpenAI, meanwhile, has recently inked partnerships with major consumer brands, including Starbucks.
The coffee giant is rolling out a new OpenAI-powered tool called Green Dot Assist to help baristas remember drink recipes and suggest food pairings.
Built using Microsoft Azure OpenAI, the tool runs on an iPad behind the counter in stores and will work as an in-store virtual assistant for baristas, Starbucks said in a press release Tuesday.
