Overview

• The companies plan to unveil their first AI-powered toy or game late in 2025, though format and age target remain undisclosed.
• The agreement grants Mattel on-demand access to OpenAI’s latest o3 model family and embeds ChatGPT Enterprise into its development and operational workflows while keeping IP ownership in Mattel’s hands.
• Both firms are instituting new privacy and security protocols to address data concerns stemming from Mattel’s 2015 Hello Barbie controversy.
• The partnership marks OpenAI’s formal entry into consumer hardware following its $5 billion acquisition of Jony Ive’s AI design firm io.
• Industry analysts forecast the global smart toy market will grow from $12.7 billion today to $40 billion by 2032 as generative AI drives innovation.