By Reuters

June 12, 2025 – 8:04 AM PDT

(Reuters) – Mattel (MAT.O) has teamed up with OpenAI to develop toys and games with artificial intelligence, and expects to launch its first AI-powered product later this year, the Barbie-maker said on Thursday.

The company, which also makes 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,” it said.

The move comes at a time when toy manufacturers are battling muted demand backdrop as consumers rein in spending to brace for the economic fallout of U.S. President Trump’s shifting trade policy.

Mattel will also incorporate OpenAI’s advanced AI tools like ChatGPT Enterprise into its business operations to enhance product innovation, the company said.

“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 OpenAI operating chief Brad Lightcap.

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.

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.

^{Reporting by Savyata Mishra in Bengaluru; Editing by Leroy Leo}