Toymaker Mattel Inc. (NASDAQ:MAT) will team up with OpenAI to test the ChatGPT maker’s artificial intelligence video model, Sora 2.
Altman Unveils Mattel Partnership to Test Sora 2
OpenAI’s CEO, Sam Altman, announced the collaboration at the company’s Developer Day conference in San Francisco on Monday.
Altman expressed his satisfaction with Mattel’s proactive approach to testing Sora 2 in their API (application programming interface), stating that the model has the potential to transform early concepts into tangible designs that can be shared and reviewed.
This collaboration is the latest in a series of strategic moves by OpenAI, which has been a major player in the AI industry since the launch of ChatGPT three years ago. Despite the company’s ambitious AI projects, some investors have expressed concerns about the sustainability of these investments.
Mattel Deepens AI Push Amid Rising Competition And Market Scrutiny
Mattel has been ramping up efforts to integrate AI into its products. The company first teamed up with OpenAI in June to explore new AI applications in its toy lines and digital products. This partnership is expected to yield its first outcomes later in the year.
The toymaker has been facing stiff competition in the toy industry. Its iconic Barbie and Hot Wheels brands have been under pressure from Pop Mart’s Labubu, which was on track to become a four-billion-dollar business by the end of the year.
Benzinga’s Edge Rankings place Mattel in the 74th percentile for quality and the 99th percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
