OpenAI, the artificial intelligence company behind ChatGPT, is making its first move into feature filmmaking. The startup is backing Critterz, a largely AI-generated animated adventure about woodland creatures, developed by OpenAI creative specialist Chad Nelson. The project, budgeted at under $30 million, is targeting a 2026 debut, with hopes for a Cannes Film Festival bow, according to The Wall Street Journal.

Nelson began experimenting with the concept three years ago while testing early versions of DALL-E, OpenAI’s image-generation tool, for a short film. The feature-length expansion will combine voice performances from human actors with artist sketches that are processed through OpenAI’s suite of models, including GPT-5 and image-generation systems.

“OpenAI can say what its tools do all day long, but it’s much more impactful if someone does it,” Nelson told WSJ. “That’s a much better case study than me building a demo.”

A New Case Study for AI in Film

At a fraction of the price of traditional animation, Critterz will serve as an early proof-of-concept for how AI might reshape the economics of filmmaking. A typical animated feature can cost north of $100 million; Nelson’s project is being produced for less than a third of that.

But the effort comes at a time of intense debate around AI’s role in Hollywood. Rolling Stone recently projected that the market for AI tools in film will grow tenfold in the coming years, while critics remain divided. Director Felix Dobaire has argued that “films generated entirely by AI seem empty, and cinema needs human vision.” Film critic Lukasz Mankowski warned that reliance on AI could dull creativity, even as supporters say the technology could free artists from repetitive production tasks.

An Uneasy Backdrop

The industry’s unease is heightened by ongoing union battles over protections against AI. Both SAG-AFTRA and the WGA have fought to enshrine safeguards for performers and writers as studios experiment with the technology. Meanwhile, copyright disputes loom large: Disney, Universal and Warner Bros. Discovery have all filed lawsuits against AI company Midjourney, alleging unauthorized use of their properties — claims Midjourney has denied.

As Critterz moves toward release, it may become a high-profile test case for how AI-driven content is received both creatively and commercially. For OpenAI, the film represents less a pivot into Hollywood than a chance to showcase its technology on the biggest stage yet.