New Delhi, June 14 -- AI-based services, Studio Ghibli images, and now AI powered toys including the childhood staples like Barbie and UNO?

Barbie-maker Mattel has teamed up with Sam Altman led company OpenAI to develop toys and games with artificial intelligence. The first of the AI-powered products is slated to hit the shelves later this year, the company announced on Thursday.

Mattel, which is also known for their iconic 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," in a statement.

The Mattel-OpenAI partnership comes as toy manufacturers face sluggish demand, with consumers tightening their budgets amid the economic uncertainty trig...