Mattel and OpenAI Partner to Bring Generative AI to Toys and Storytelling

Mattel, the company behind brands like Barbie, Hot Wheels, and Fisher-Price, is partnering with OpenAI in a move that blends generative AI with the future of play and storytelling. The announcement marks OpenAI’s first formal collaboration with a major toy manufacturer and signals a new phase in how AI might shape consumer products, especially for younger audiences.

The partnership has two goals: to bring generative AI into Mattel’s internal operations, and to explore new ways AI can enhance toy design, content development, and interactive play.

AI in the Toybox: Personalized Play on the Horizon

Mattel says it’s already using ChatGPT Enterprise to support product development, marketing, and storytelling across its teams. The company has developed more than 10 internal tools powered by ChatGPT to assist with tasks like brainstorming, writing storylines, and generating campaign copy.

The first AI-powered toy experience is expected to launch by the end of 2025, though exact product details remain under wraps.

The broader ambition is to use AI to help children and families engage with Mattel’s characters and worlds in more interactive ways. That could mean voice-based storytelling, personalized content, or toys that respond to imaginative prompts—all shaped by generative models like GPT-4o.

OpenAI’s Chief Operating Officer, Brad Lightcap, emphasized the collaboration’s potential, saying: “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.”

Importantly, Mattel emphasized that this partnership does not involve licensing its intellectual property for its characters to OpenAI. Instead, the two companies are collaborating on product innovation while maintaining strict brand and IP controls.

AI as a Creative Tool, Not a Replacement

Rather than automate creativity, Mattel is positioning AI as a supporting partner for its designers, writers, and marketers. Mattel President and COO Richard Dickson said the technology is helping teams scale ideas faster, while also enabling more diverse and inclusive storytelling across its global brands.

OpenAI, for its part, is looking to expand ChatGPT’s use in corporate environments where creativity and brand identity are critical. Mattel's decades of intellectual property, characters, and lore offer a rich testbed for exploring how AI can support long-form content creation and cross-platform experiences.

This partnership also reflects a broader effort by OpenAI to integrate its technology into physical products. The company recently acquired the startup of former Apple designer Jony Ive to explore AI-driven hardware, signaling deeper ambitions beyond software.

Guardrails for a Young Audience

Given the target market, both companies emphasized that safety and privacy are top priorities. Any future consumer-facing AI tools or toys will be built with strict controls in place—including filters for age-appropriate content, transparent data use, and parent-friendly settings.

Mattel said its commitment to child safety and digital trust will remain core as it develops interactive features. The company is also exploring ways to involve parents in setting parameters for how AI tools are used in toys and content.

This comes at a time when regulators and advocacy groups are closely watching how AI is deployed in products aimed at children. By embedding safeguards from the start, Mattel hopes to stay ahead of public and policy concerns.

The collaboration also arrives amid a sluggish U.S. retail climate, where consumer demand has softened due to inflation and trade policy uncertainty. By embracing innovation through AI, Mattel aims to reenergize its brand and expand its reach across both digital and physical platforms.

What This Means

The Mattel–OpenAI partnership reflects a broader shift in how companies are integrating generative AI—not just into office workflows, but into physical products and cultural touchpoints. For a toy company, the use of AI isn’t about replacing imagination—it’s about scaling it, offering more personalized and interactive forms of storytelling that can adapt to a child’s creativity in real time.

Mattel is also expanding its storytelling efforts across movies and games, and is exploring AI-powered digital assistants based on characters like Polly Pocket or Hot Wheels.

The deal shows how legacy brands are adapting to the generative era by combining rich intellectual property with flexible AI platforms. For OpenAI, it’s an opportunity to prove that its models can power not just enterprise chat tools but everyday experiences—even those that begin on the playroom floor.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.