Barbie is enjoying a second youth, thanks to the Margot Robbie film—the highest-grossing movie of 2023. She never completely went out of fashion, but there’s no denying the film revitalized her message and gave her a modern makeover. Mattel is now embracing AI systems to propel Barbie and other plastic icons into the 21st-century spotlight.
Barbie + AI. According to Bloomberg, Mattel Inc., creator of Barbie, Hot Wheels, Polly Pocket and other popular toy franchises, has reached an agreement with OpenAI to help design and incorporate AI systems into its toys. The collaboration remains in its early stages.
Some examples. OpenAI Chief Operating Officer Brad Lightcap and Mattel Chief Franchise Officer Josh Silverman have discussed several possibilities—such as creating digital companions based on Mattel characters and making games like Uno more interactive. They expect to provide more details and finalize plans by the end of this year, following conversations that began in late 2024.
AI within children’s reach. The announcement has sparked some controversy. While AI is increasingly viewed as a valuable educational tool, its indiscriminate and unsupervised use has raised concerns over impacts on mental health and social development—especially for children. Futurism recently cited a Stanford University study that warned about the risks of letting children interact with AI systems without supervision.
OpenAI’s goal is to entertain. This deal with Mattel isn’t an isolated case. OpenAI is actively trying to break into the entertainment industry. The company knows franchises generate significant revenue and has begun meeting with major Hollywood producers and studios. Among its goals: to promote Sora, its AI-based video generator that creates hyper-realistic clips from text prompts. Sora allows filmmakers to control elements such as lighting and weather, offering both cost and time savings.
OpenAI needs money. OpenAI’s push into entertainment is driven by a financial reality: The company needs cash. Despite raising a record $40 billion in the largest private financing round in history and doubling annual revenue to $10 billion in 2025, OpenAI continues to operate at a significant loss. It posted a $5 billion deficit in 2024 and faces enormous operating costs.
ChatGPT incurs substantial infrastructure and model training expenses. Reports suggest a single complex query can cost up to $1,000. The company doesn’t expect profitability until at least 2029. Meanwhile, global competition—especially from Chinese companies such as DeepSeek—continues to squeeze OpenAI’s financial margins.
AI wants to entertain. OpenAI is far from alone. Many companies are racing to secure a foothold in the entertainment industry. AI’s influence in this space is undeniable. Streaming platforms like Netflix, YouTube, and Spotify already use algorithms to analyze user preferences and habits. Tools such as Amper Music and DALL-E are now generating content consumed at rates that rival traditional production.
Image | Sandra Gabriel (Unsplash)
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