Mattel Inc. (MAT, Financial), the renowned Barbie doll manufacturer, has announced a strategic partnership with OpenAI to develop artificial intelligence (AI) toys and games. This collaboration aims to launch its first AI product later this year, causing a slight uptick in Mattel's stock price during U.S. trading hours.
As one of the world's largest toy companies, Mattel produces iconic products such as Barbie, Hot Wheels, and UNO cards. The integration of OpenAI's technology is set to enhance gaming experiences by embedding AI into upcoming products, with a focus on safety and privacy.
The partnership aims to design groundbreaking toys, leveraging AI to solidify Mattel's leadership in innovation and reimagine gaming formats. This move comes as toy manufacturers face weakened demand due to consumer spending cuts influenced by economic changes from former President Trump's trade policies.
Mattel plans to incorporate OpenAI's advanced tools, like ChatGPT Enterprise, into its operations to boost product innovation. OpenAI's COO, Brad Lightcap, highlighted that this collaboration will provide Mattel with advanced AI capabilities to enhance productivity and creativity across the company.
Mattel has been diversifying its offerings by creating movies, TV shows, and mobile games based on its popular brands to counteract a slowdown in its core toy business. Recently, the company withdrew its annual earnings guidance and announced price increases for some products to offset rising supply chain costs.
