Mattel, the renowned maker of Barbie dolls and UNO cards, has partnered with OpenAI, led by Sam Altman, to introduce toys and games infused with artificial intelligence. The first AI-powered products are expected to be released later this year, as announced by the company.

The collaboration aims to bring the magic of AI to play experiences suitable for different age groups, focusing on innovation, privacy, and safety, according to a statement from Mattel. This initiative comes at a time when the toy industry is facing challenges due to sluggish demand and economic uncertainties.

With consumers tightening their budgets amidst evolving trade policies, toy manufacturers in the US have been experiencing a slowdown in innovation and increased production costs due to tariffs. This has led to delays in product launches and employee layoffs to navigate the uncertain market conditions.

To counter the decline in its core toy business, Mattel has turned to producing films, TV shows, and mobile games based on its popular brands like Hot Wheels and Barbie, as reported by Reuters. The recent increase in tariffs on Chinese imports by President Trump has further exacerbated the situation, causing doll makers to halt production or raise prices.

As part of the collaboration with OpenAI, Mattel will utilize tools like ChatGPT Enterprise to enhance creativity and streamline operations within the company. By leveraging OpenAI's AI capabilities, Mattel aims to revolutionize how fans engage with its beloved brands, ensuring positive and enriching experiences for all.

OpenAI's COO, Brad Lightcap, expressed excitement about the partnership, stating that the tools provided by OpenAI will revolutionize the creative process and innovation, benefiting both children and the company as a whole.