Could Disney Release OpenAI’s Controversial Animated Movie ‘Critterz’ in Theaters and Disney Plus?
Disney’s partnership with OpenAI has sparked speculation about the company’s potential role in distributing the AI-generated animated film Critterz, blending traditional entertainment with cutting-edge technology. The deal, announced earlier this week, involves a $1 billion investment from Disney into OpenAI, along with licensing rights for Disney characters to appear in videos created by OpenAI’s Sora tool. This collaboration could extend to projects like Critterz, an upcoming feature film backed by OpenAI that uses AI to produce animation faster and cheaper than conventional methods.
Here’s the TL;DR...
Disney invested $1 billion in OpenAI and licensed over 200 characters for use in Sora-generated videos.
Critterz is an AI-powered animated film with a $30 million budget, set for a 2026 release after debuting at Cannes.
Compared to Pixar’s recent flop Elio, which cost over $200 million, Critterz highlights AI’s potential for lower-cost production.
The animation industry has pushed back against AI tools like Sora, citing concerns over job losses and unauthorized use of artists’ work.
Disney has a history of distributing animated films from outside studios, including Pixar before its acquisition and Studio Ghibli titles in the West.
What Does the Disney-OpenAI Deal Entail?
Disney’s agreement with OpenAI includes a significant financial stake and access to the startup’s AI video generation tool, Sora. Under the three-year pact, OpenAI can incorporate masked versions of Disney characters from franchises like Star Wars, Pixar, and Marvel into user-prompted videos.
In return, Disney gains warrants for additional equity and becomes a major customer, potentially integrating Sora into its own platforms like Disney+ for user-generated content. This move positions Disney to explore AI in content creation amid industry shifts.
What Is ‘Critterz’ and Why Is It Controversial?
Critterz started as a short animated film in 2023, created with early AI tools, and was later remastered using Sora in early 2025. OpenAI is now funding a full-length version with a $30 million budget, directed by the original creator, aiming for a Cannes debut in 2026 and a worldwide theatrical release.
The story follows forest creatures on an adventure after a stranger disrupts their village, produced in just nine months using AI for much of the animation. Its controversy stems from relying on AI, which some see as a threat to traditional filmmaking.
How Does the Budget of ‘Critterz’ Compare to Recent Pixar Flops Like ‘Elio’?
Critterz‘s $30 million budget stands in stark contrast to Pixar’s Elio, which reportedly exceeded $200 million despite an initial estimate of $150 million. Elio, released in June 2025, marked Pixar’s worst opening weekend ever and struggled to break even, earning around $139 million worldwide by August against projections needing $375 million for profitability.
This gap underscores AI’s appeal for cost savings, as Critterz promises faster production without the overhead of large animation teams. Yet, Elio‘s underperformance also highlights audience preferences for established IPs over originals.
Why Has the Animation Community Backlashed Against AI Projects Like ‘Critterz’?
Animators and studios have voiced strong opposition to AI tools like Sora, arguing they train on existing art without permission, potentially displacing jobs. Studio Ghibli and other Japanese companies demanded OpenAI halt using their content for Sora 2 training in October 2025.
Hollywood’s broader backlash includes concerns over deepfakes and misinformation, with Critterz drawing criticism for its AI-heavy approach that some say lacks the soul of hand-crafted animation. Even so, proponents argue it democratizes filmmaking, though skeptics point to early trailers that feel generic.
Has Disney Released Animated Movies from Other Studios Before?
Disney has distributed animated films not produced in-house, setting a precedent for potential involvement with Critterz. From 1995 to 2006, before acquiring Pixar, Disney handled distribution for films like Toy Story under a partnership agreement.
The company also managed Western releases for Studio Ghibli titles, such as Spirited Away and Princess Mononoke, from the late 1990s through the mid-2010s. These deals show Disney’s willingness to collaborate on external projects.
Disney’s OpenAI partnership opens doors to innovative but divisive projects like Critterz, balancing cost efficiencies against creative integrity. As AI evolves, the industry may see more hybrid productions, though backlash suggests a need for ethical guidelines to protect artists. Ultimately, success will hinge on audience reception and whether these tools enhance storytelling without replacing human touch.
Hat Tips
The Walt Disney Company and OpenAI Reach Agreement to Bring ... (Published December 11, 2025)
Disney to invest $1 billion in OpenAI, license characters for Sora ... (Reuters, Published December 11, 2025)
Disney’s OpenAI Deal ‘Appears to Sanction’ AI Company’s ‘Theft of ... (Variety, Published December 11, 2025)
Disney Agrees to Bring Its Characters to OpenAI’s Sora Videos (The New York Times, Published December 11, 2025)
OpenAI’s $30M Animated Film is Coming. Pixar Should Be Worried (The Ankler, Published September 23, 2025)
OpenAI Backs AI-Made Animated Feature Film (The Wall Street Journal, Published September 7, 2025)
OpenAI is backing a new animated feature film ‘made largely with AI ... (PC Gamer, Published September 9, 2025)
Native Foreign Uses OpenAI’s Sora To Remake 2023 AI Film ‘Critterz’ (Forbes, Published February 13, 2025)
Elio (film) (Wikipedia)
According to THR, several sources state that the actual budget for ... (Reddit, Published June 30, 2025)
No IP, no audience: Elio gives Pixar worst opening ever (eMarketer, Published June 24, 2025)
Studio Ghibli, Square Enix demand OpenAI stop training Sora 2 on ... (Mashable)
The long, ugly history between Disney and Studio Ghibli (Polygon, Published May 27, 2020)
Three ages of Pixar (Decent Films)
Article Compiled and Edited by Ivy Adams for Pirates & Princesses.