Mattel, the company behind Barbie and other toys, has entered into a strategic partnership with ChatGPT-maker OpenAI, paving the way for artificial intelligence-powered products. The first product driven by OpenAI’s technology will be revealed later this year.

The toy company, which also makes Hot Wheels and Uno cards, plans to "bring the magic of AI to age-appropriate play experiences with an emphasis on innovation, privacy, and safety".

“AI has the power to expand on that mission and broaden the reach of our brands in new and exciting ways,” said Josh Silverman, chief franchise officer of Mattel. “Our work with OpenAI will enable us to leverage new technologies to solidify our leadership in innovation and reimagine new forms of play.”

The announcement is arriving at a time when toy manufacturers are struggling with dampened demand as consumers reduce spending to brace for the economic fallout of US President Trump's shifting trade policy.

Brad Lightcap, chief operating officer at OpenAI, said: “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.”

The two companies have yet to disclose the Mattel properties they are working on. The Mattel deal follows partnerships OpenAI has forged with several media companies, including The Atlantic, News Corp, The Daily Telegraph and The Financial Times.