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OpenAI Backs AI-Made Animated Feature Film ‘Critterz

by Team Lumida
September 8, 2025
in AI
Reading Time: 3 mins read
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"Dota2 OpenAI戰隊打敗人類原因曝光 AI還是靠「作弊」取勝" by steamXO is licensed under CC PDM 1.0

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Key Takeaways

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  • OpenAI is supporting the production of Critterz, a feature-length animated film created largely using AI tools, aiming for a Cannes Film Festival debut in May 2026.
  • The film’s production timeline is about nine months, significantly faster and cheaper than typical animated features, with a budget under $30 million.
  • Human artists create sketches that feed into OpenAI’s AI models (including GPT-5 and image generators), while voice acting is performed by human actors.
  • The project aims to demonstrate AI’s potential to accelerate and reduce costs in filmmaking, potentially driving broader Hollywood adoption.
  • Despite enthusiasm, risks remain around audience reception, distribution, and industry pushback from actors and writers concerned about AI’s impact on jobs and copyrights.

What Happened?

OpenAI’s creative specialist Chad Nelson, who initially developed Critterz as a short film using DALL-E, teamed with London and Los Angeles production companies to scale it into a full-length feature. The film follows forest creatures on an adventure and is funded by Federation Studios. The team is developing a profit-sharing model for the roughly 30 people working on the film. Production has started, with casting decisions forthcoming.

Why It Matters?

Critterz serves as a high-profile case study for generative AI’s ability to transform content creation by speeding production and lowering costs. If successful, it could catalyze wider industry acceptance of AI tools in animation and filmmaking. However, the project also highlights tensions in entertainment over AI’s impact on creative jobs and intellectual property, as major studios have sued AI companies over copyright concerns. The film’s use of human voice actors and artists may help it qualify for copyright protection despite AI-generated elements.

What’s Next?

Watch for updates on Critterz’ production progress, casting announcements, and marketing plans. Monitor industry reactions and potential distribution deals. Investors and industry watchers should track how AI-driven content creation evolves, including regulatory and guild responses, and whether AI tools become mainstream in Hollywood workflows.

Source
Tags: OpenAI
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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

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