Toy giant Mattel announced on Thursday a collaboration with AI leader OpenAI to launch the first AI-powered product by a major toy company, marking OpenAI's expansion from enterprise software into consumer entertainment.
The partnership will leverage OpenAI's technology to develop new products for Mattel's brands, with the first AI-driven product expected to be unveiled later this year, according to OpenAI.
The agreement also includes deploying ChatGPT Enterprise across Mattel’s business operations to enhance product development and creative processes.
As AI continues to permeate consumer products, this move could redefine how children interact with toys in the future.
This collaboration allows OpenAI to tap into Mattel's expanding entertainment empire, which includes upcoming films based on Hot Wheels, Polly Pocket, and other franchises.
Decrypt has reached out to Mattel for further comments and will update the report if the company responds.
According to a Bloomberg interview with executives from both companies, the technology could lead to digital assistants based on Mattel characters or make traditional games like Magic 8 Ball and UNO more interactive.
"Every product and experience we create is designed to inspire fans, entertain audiences, and enrich lives through play," said Josh Silverman, Mattel's Chief Franchise Officer, in a statement. "AI has the potential to expand this mission and amplify our brand impact in new and exciting ways."
Silverman described the first product as spanning "a spectrum of physical products and certain experiences" but did not provide specific details.
AI and Child Safety
Given Mattel's young customer base, safety and privacy concerns are central to the agreement.
"As a core part of this collaboration, Mattel and OpenAI will prioritize safety, privacy, and security in upcoming products and experiences," Mattel stated, emphasizing the importance of age-appropriate play experiences.
Mattel retains full control over its intellectual property and product development, with Silverman noting that the company has not licensed its brands to OpenAI. Initial discussions between the two companies began at the end of last year.
"Through OpenAI, Mattel gains access to advanced AI capabilities and new tools to drive productivity, creativity, and company-wide transformative growth," said Brad Lightcap, OpenAI's Chief Operating Officer.
This announcement comes as OpenAI continues to expand across industries.
OpenAI has also secured a major cloud services partnership with Microsoft and collaborated with Apple to integrate ChatGPT into iOS devices. Additionally, it has reached content licensing agreements with leading news publishers, including the Associated Press.
Last month, the company saw significant success, with ChatGPT handling 80% of generative AI traffic, driving 5.5 billion visits—far surpassing other AI models.
