Toymaker Mattel (MAT) has teamed up with OpenAI (PC:OPAIQ) to explore the creative potential of Sora 2, OpenAI’s next-gen video generation model. The collaboration was announced at OpenAI’s Developer Day, where CEO Sam Altman praised Mattel as “a great partner” helping test Sora 2’s capabilities through its API.
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Sora 2 was released earlier this month on an invitation-only basis. Compared to the original Sora model, it offers better visuals, more realistic movement, and improved sound. Also, it has a new “Cameo” feature that allows users to place their own likeness or avatar into a generated video.
Mattel and OpenAI Bring Toy Ideas to Life
Mattel is integrating Sora 2 into its operations to enhance its digital capabilities. Its designers will use Sora 2 to accelerate the product development process by turning initial sketches into visual concepts.
Its designers can use a sketch as a prompt to generate videos quickly. This moves early ideas from a static image to a shareable video, allowing for faster feedback and iteration. Altman described it as a leap forward in “bringing product ideas to life more quickly.”
The first AI-powered product from the partnership is expected later this year. Overall, the deal signals Mattel’s aim to use AI to lead in the toy market and OpenAI’s target to expand from business tools into everyday entertainment.
What Is the Price Target for MAT Stock?
Turning to Wall Street, MAT stock has a Moderate Buy consensus rating based on four Buys and three Holds assigned in the last three months. At $25.29, the average Mattel price target implies a 39.96% upside potential.
