Can OpenAI's Critterz Prove AI Movies Belong in Hollywood or Will It Flop at the Box Office?

Will OpenAI's Critterz Make or Break AI Filmmaking?

The ChatGPT-powered animation Critterz is an ambitious and risky project.

You might have missed the original AI-generated short film when it surfaced a couple of years ago. It didn’t exactly wow audiences. Comments on YouTube ranged from harshly critical—“I'd call this garbage, but that'd be an insult to garbage”—to outright dismissive: “This was the worst 5 minutes I will never get back.” Despite this, OpenAI saw enough potential to back an expanded, feature-length version aimed at premiering at the Cannes Film Festival in May 2026, followed by a full cinema release.

This move raises a key question: will AI filmmaking, led by projects like Critterz, prove its ability to compete with Hollywood while cutting production costs, or will it falter and set AI-driven cinema back?

From Tech Demo to Feature Film

The original Critterz short was created by Native Foreign, a California-based company. They used OpenAI’s DALL·E to generate visuals—characters and backgrounds—before handing everything off to Emmy-winning animators for refinement.

The film spoofed David Attenborough-style nature documentaries but struggled with humor and came off more as a technology showcase than genuine entertainment. It also leaned heavily on generative AI’s familiar trope: surreal creatures. This trend resurfaced recently when LucasFilm presented an AI-generated Star Wars short that was widely panned.

The Next Step: A Full-Length AI Movie

Now, Native Foreign has partnered with British production company Vertigo Films and its Paris-based parent, Federation Studios, to develop the full feature. The screenplay is penned by James Lamont and Jon Foster, known for Paddington in Peru. Human actors will voice the characters, and artists will produce reference sketches to guide OpenAI’s tools like GPT-5 in generating visuals.

According to the Wall Street Journal, production will take around nine months with a budget under $30 million. That’s modest compared to Pixar’s $200 million projects or Netflix’s $100 million hit K-Pop Demon Hunters. Yet, for an AI-assisted film, it's a substantial investment. Some fully animated movies have been made for less.

Why This Matters for Creatives

Choosing a cinema release makes this a critical test for AI-generated films. Free streaming debuts might attract viewers out of curiosity. But will audiences pay for an AI-crafted animation in theaters? For studios, affordability only matters if the project turns a profit.

Another challenge lies in intellectual property rights. Major animation studios rely heavily on merchandise sales—think toys, posters, and collectibles—to boost revenue. However, courts have ruled AI-generated art can’t be copyrighted. The involvement of human actors and artists in Critterz is likely a strategic move to secure some IP protections. Without it, merchandise rights could become a legal gray area if the film takes off.

What Creatives Should Watch

• Will AI-driven animation reach quality levels that justify cinema ticket prices?
• Can AI tools like GPT-5 and DALL·E integrate well with traditional animation workflows?
• How will the industry handle IP rights around AI-generated content?
• Will budgets for AI films shrink further while maintaining creative standards?

Critterz could set a precedent for how AI contributes to filmmaking, affecting roles from writers and animators to voice actors and legal teams. For creatives interested in the future of AI-assisted production, this is a development worth monitoring closely.

If you want to build skills around AI tools that might shape projects like Critterz, check out Complete AI Training’s latest courses for hands-on learning.