A sign of the future... or the end times, depending on your point of view.
Throughout recent histroy, few companies have managed to impact the creative industry as intensely as OpenAI, with products like ChatGPT serving to popularize the widespread use of and generating investor interest in generative AI technologies.
Despite recording net losses of several billion USD each year ever since the start of the current AI boom in 2022, along with controversies surrounding its senior figureheads like Sam Altman as well as legal battles due to alleged copyright infringement, the organization has since introduced new tools like image generator DALL-E and video generator Sora – efforts which are set to culminate with the release of a fully-fledged, AI-generated movie in 2026.
Critterz' Beginnings
Initial hints at such a project were already publicized in 2023, when OpenAI published a video titled "匚尺丨ㄒㄒ乇尺乙 -- An animated short created with AI". The video was primarily intended to showcase the potential of its AI image generation model Dall-E 2, with the company's creative specialist Chad Nelson using the software to generate images of the titular fantasy forest creatures. These "critterz" were then animated by creative agency and production company called Native Foreign, to mixed reception by early viewers:
"Atmospheric, beautiful, but the impression is that the characters make a minimum of movements. Most likely, we who make cartoons with more familiar methods will not be replaced soon."
In the 2023 short, only the designs were AI-generated. However, following advancements in video generation technology, OpenAI decided to highlight the capabilties of their Sora tool by "remastering" the video in February 2025 by having the software generate the entire video (something also possible with competing products), once again yielding a mixed reception, as can be ascertained by comments like:
"I think a video of how you created all of this would be far more useful than a short movie. I'm a pro user and Sora generates garbage [...]"
Regardless of such criticism directed against their work, on September 7, 2025, first reports of OpenAI wanting to use the same generation tools to expand the short into a feature-length animated movie started surfacing. The project would seemingly once again involve Native Foreign, as well as UK-based studio Vertigo Film.
Critterz' Details
The moniker of "first AI-generated" movie, which some commentators have used to describe the project, is somewhat misleading though: While its amibitious target release date (in time for the Cannes Film Festival of 2026) would be extremely difficult to achieve if the movie was traditionally animated, everything apart from the visuals will still involve human artists.
For example, the movie will be written by the writers of Paddington in Peru (2024) – though AI-generated scripts would certainly be nothing new – with a cast of voice actors which was teased to be revealed at a later date. Still: The film's current budget of only $30 million would make it far cheaper than most current theatrical animated features, which would certainly make the final product an excellent advertisement of OpenAI's products if it turns out to be successful.
At the same time, the announcement itself has already garnered some attention in the industry, both by creatives (already largely opposed to AI) and audiences, though reactions have generally been negative, with the previous Critterz videos receiving an influx of new and much more critical comments:
"this helps to ruin the future of animation. so i hope the movie is a total flop"
But what do you think? Was the timing of this announcement wise, considering how widespread concerns about AI-related disruptions in the industry are right now? Or may this have been just the attention OpenAI was hoping to receive? Let us know in the comments!