OpenAI, the company behind ChatGPT, is making its first move into Hollywood by backing an animated feature film, Critterz, created largely with AI. The move underscores how quickly AI is moving beyond productivity tools into consumer-facing industries like entertainment. For investors, if AI can make commercially successful films, it could create a new growth opportunity for OpenAI’s partners and public companies in streaming, animation, and AI technology.
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OpenAI Bets on AI-Made Animated Film
According to the Wall Street Journal, Critterz was created by OpenAI’s Chad Nelson, who first sketched the idea using DALL-E three years ago. For context, DALL-E is OpenAI’s text-to-image model that uses deep learning to turn written prompts into digital images.
Currently, Nelson has partnered with London’s Vertigo Films and LA-based Native Foreign to produce a full-length version of Critterz, aiming for a Cannes debut in May. Thanks to AI, the team hopes to finish the movie in just nine months compared to the usual time frame of three years.
Additionally, the film is being made on a budget of under $30 million, significantly lower than that of most animated films. The team will cast human actors for the character voices and employ artists to create sketches, which are then processed using OpenAI tools, including GPT-5 and image-generation models.
What It Means for Investors
Nelson stated that OpenAI is betting that Critterz will prove AI can create big-screen-quality content and speed up Hollywood’s adoption of the technology.
This raises an interesting question for investors: could AI-made content become a multi-billion-dollar opportunity? By cutting production costs and speeding up filmmaking, AI could shake up traditional studios, boost profits, and create more content at lower costs. Moreover, companies that adopt AI early could gain a bigger share of the growing streaming markets, offering strong potential returns for investors.
Having said that, major entertainment companies like Disney (DIS) and Netflix (NFLX) are already testing AI for production, marketing, and enhancing user experiences. However, many remain cautious about fully adopting the technology, as actors and writers worry AI tools could put jobs at risk.
Which Is the Best AI Stock to Buy, According to Analysts?
Investors looking to buy into OpenAI in 2025 may be disappointed, as the company is still private and not publicly traded.
However, those interested in the AI sector can explore other leading AI-related stocks. Using TipRanks’ stock comparison tool, investors can compare top AI companies and conduct further research to find the most promising options based on analyst ratings and insights.
