Mattel is sliding artificial intelligence into the toy box. The company behind Barbie, Hot Wheels and Uno says its first AI-powered plaything—built with OpenAI’s tech—will hit shelves later this year, promising “age-appropriate magic” that blends ChatGPT-style conversation with the tactile fun of classic toys. CEO Ynon Kreiz has spent the past year turning Mattel into an entertainment studio; now he’s betting that smart dolls and talking racecars can reignite sales in a sluggish toy market.

OpenAI’s enterprise tools will also run under the hood at Mattel HQ, crunching trend data, speeding up design cycles and letting engineers prototype storylines or voice scripts in minutes. Operating chief Brad Lightcap calls the deal “company-wide transformation at scale,” a signal that AI won’t just animate dolls—it will streamline everything from supply-chain forecasts to marketing copy. Privacy and safety safeguards, Mattel insists, are baked into every interaction.

Industry analysts say timing is key. With consumers pinching pennies amid tariff turbulence, toymakers need fresh hooks; AI characters that learn a child’s name or tweak a story on the fly could justify higher price tags while opening recurring-content revenue streams. If Mattel pulls it off, playtime may never be the same—kids will ask questions, their dolls will answer, and parents may finally get a break from “are we there yet?” on long car rides.