Barbie may get AI upgrade.
Mattel, the maker of Barbie, Hot Wheels and UNO, has worked with Openai to bring artificial intelligence to the iconic toy brand, the company announced Thursday.
Using Openai's technology, Mattel “conveys the magic of AI to an age-appropriate play experience with a focus on innovation, privacy and safety,” the California-based toy maker said in a press release Thursday.
Details are still wrapped, but the first AI-powered product is expected to fall later this year.
Mattel has not handed over any intellectual property in the transaction. In an interview with Bloomberg, Mattel's chief franchise officer Josh Silverman said the company has full control over the products it is developing.
Talks with Openai first began late last year, he added.
It's not just toys. Mattel also incorporates OpenAI tools such as ChatGpt Enterprise into its business operations, Toy Company said.
Mattel's shares rose 1.8% to $19.59 early on Thursday, then went on to $19.30 in after-hours trading.
Mattel and Openai did not respond to requests for comment from Business Insider.
Toy sales are slow
The move will pull consumers back spending amid uncertainty over President Donald Trump's trade policy, as demand for toy makers is weak.
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Mattel retracted its annual forecast last month and said it would raise prices for some U.S. products to offset Trump's tariffs.
The company also said it would “adjust” its promotional activities to save costs. Mattel's chief financial officer, Anthony Dilvestro, in a revenue call last month, said that the cost-cutting target for the year rose from $60 million to $80 million.
Over the past year, Mattel has leaned on entertainment, including films, TV shows and mobile games, helping to offset slowdowns in toy sales.
Meanwhile, Openai has recently inked partnerships with major consumer brands, including Starbucks.
The Coffee Giant has deployed a new Openai-powered tool called Green Dot Assist to help baristas recall drink recipes and suggest food pairings.
Built using Microsoft Azure Openai, the tool runs on the iPad behind the counter in-store and will serve as Baristas' in-store virtual assistant, Starbucks said in a press release Tuesday.
