Tech
Pixar/OpenAI logo
(Bronson Stamp for Sherwood Media)

OpenAI is Pixar

The “wow factor” of each company impressed the masses, but scared creatives.

A breakthrough technology captures the public’s imagination; the disruption threatens multiple creative industries; a feverish race to achieve a futuristic goal once unimaginable begins. 

You could say any of these apply to OpenAI, but decades ago, this was how people were talking about computer-graphics pioneer Pixar.

Breakthrough

When Apple founder Steve Jobs purchased Pixar from George Lucas in 1986, the fledgling animation studio was pushing the boundaries of computer-generated imagery.

While crude by today’s standards, nobody had seen anything like their animated short films “Luxo Jr.” or 1989’s “Tin Toy,” which won the Academy Award for Best Animated Short Film. (Pixar would go on to win 22 more Academy Awards, and two nominations for Best Picture.) 

“Tin Toy” was not just a technical marvel at the time, but showed that these cold, digital pixels could be capable of heartwarming, emotional storytelling. Pixar’s breakthroughs inspired a generation of programmers, digital artists, and creators to build the modern computer-graphics industry — which, incidentally, would also lead to the computing and hardware innovations that made OpenAI possible. In 2006, animation powerhouse Disney purchased Pixar for $7.4 billion.

ChatGPT took the tech world by storm from launch day in November 2022. After decades of progress in foundational AI breakthroughs like convolutional neural networks and transformers, the public finally got a chance to see what these advances could mean for regular people. Reading news coverage of ChatGPT’s initial release from just two years ago feels like stepping into a time machine to a simpler time, like in this breathless New York Times piece:

“Hundreds of screenshots of ChatGPT conversations went viral on Twitter, and many of its early fans speak of it in astonished, grandiose terms, as if it were some mix of software and sorcery.” 

Disruption

The “wow factor” of what Pixar was creating at the time impressed artists, technologists, and filmmakers, but it also signaled a disruption. Was the era of hand-drawn animation nearing its end? 

In the 1998 book “Computer Animation: A Whole New World,” Pixar cofounder Ed Catmull told author Rita Street:

“Luxo Jr. sent shock waves through the entire industry — to all corners of computer and traditional animation. You see, at that time, most traditional artists were afraid of the computer. They did not realize that the computer was merely a different tool in the artist’s kit but instead perceived it as a type of automation that might endanger their jobs."

A similar thing happened when OpenAI’s ChatGPT and DALL-E text-to-image generator popped up in front of creative writers, artists, and journalists, but with an added wrinkle. This time, not only was this startling technology putting their livelihoods at risk, but it was trained on their own copyrighted public works. Rather than shrug it off and accept this as the inevitable future, many creators have filed lawsuits and designed clever adversarial countermeasures.

Holy Grails

Now OpenAI plans to continually and rapidly improve its technology, racing to achieve a lofty goal, as Pixar did. 

The engineers and animators at Pixar saw the limitations of their technology at the time, but had their eyes fixed on the future of computer graphics. They wanted to make everything look real. 

“We people in computer graphics have known in our bones for 20 years that we would do this,” Pixar cofounder Alvy Ray Smith said in a 1989 New York Times story about the rise of computer animation and the advances that led to “Tin Toy.” 

“Our goal is not to have people say, ‘That’s computer animation,’” he said. “Our goal is photorealism.” 

OpenAI’s stated mission is to achieve “artificial general intelligence,” (AGI) — loosely defined as advanced AI systems that not just equal but surpass humans in all tasks, which has long been considered the Holy Grail of machine learning. 

OpenAI’s mission page states:

“If AGI is successfully created, this technology could help us elevate humanity by increasing abundance, turbocharging the global economy, and aiding in the discovery of new scientific knowledge that changes the limits of possibility.”

It’s clear that OpenAI’s leadership knows there’s a long road ahead to AGI, and they appear to be unimpressed with what their technology can do today. Earlier this year, OpenAI CEO and cofounder Sam Altman said

“ChatGPT is mildly embarrassing at best. GPT-4 is the dumbest model any of you will ever have to use again, by a lot.”

Pixar spent decades pushing the boundaries of computer-graphics technology, which is now so common that consumers don’t really think much about it. OpenAI has been on its quest for AGI for nine years, though recently the pace of its breakthroughs is quickening. But one question hangs over OpenAI: is AGI even possible? 


Read the other arguments for OpenAI's future here.

More Tech

See all Tech
tech

OpenAI races to release updated ChatGPT in response to Gemini, the WSJ reports

OpenAI could release an updated GPT-5.2 as soon as this week as it races to respond to Google’s Gemini 3 chatbot. Last week, OpenAI CEO Sam Altman declared a “code red” in response to the threat, as Google appeared to leap to the front of the pack with its high-scoring AI model.

Altman has directed OpenAI teams to pause work on its quest for AGI and the Sora 2 video generation app, and double down on its core flagship product, ChatGPT, as it faces new pressure from competitors, The Wall Street Journal reports.

Altman seems to be panicking that if the company’s core product falls out of favor, it may not be able to generate the cash needed to pay for the $1.4 trillion worth of deals it has signed, according to the report.

Altman has directed OpenAI teams to pause work on its quest for AGI and the Sora 2 video generation app, and double down on its core flagship product, ChatGPT, as it faces new pressure from competitors, The Wall Street Journal reports.

Altman seems to be panicking that if the company’s core product falls out of favor, it may not be able to generate the cash needed to pay for the $1.4 trillion worth of deals it has signed, according to the report.

900M

OpenAI’s ChatGPT is nearing 900 million weekly active users, according to a new report from The Information, up from 800 million in October. The Microsoft-backed chatbot has notably higher usership than Google’s Gemini, which as of its last earnings call had 650 million monthly active users. (ChatGPT’s monthly number is likely much higher than its weekly stats.)

Still, The Information notes that thanks to the success of Google’s latest AI model, app downloads have jumped and visits to its website are growing much more swiftly than those to ChatGPT’s — stats that have contributed to a “code red” situation at OpenAI.

tech

Falling behind its rivals and facing internal tension, Meta reportedly preps new “Avocado” AI model

2025 turned out to be quite a chaotic year for Meta’s big AI dreams.

This year was supposed to be all about Llama 4, Meta’s open-source AI model that never fully launched.

In a frenzied pivot to get back in the race, Mark Zuckerberg undertook an AI all-star hiring spree for his new Meta Superintelligence Labs, spending oodles of cash on NBA-sized pay packages to lure recruits.

So how’s it all going within the company? Things aren’t exactly humming along, according to CNBC.

It reports that the new team has encountered friction within Meta’s corporate structure. The cloistered team is apparently working on a new frontier AI model code-named “Avocado,” which, despite Mark Zuckerberg’s passionate open-source AI manifesto, might turn out to be a proprietary, closed-source model.

Per the report, the many in the company were expecting Avocado to be released before the end of this year, but it’s now planned for Q1 2026.

A Meta spokesperson said, “Our model training efforts are going according to plan and have had no meaningful timing changes.”

Updated to include comments from Meta

In a frenzied pivot to get back in the race, Mark Zuckerberg undertook an AI all-star hiring spree for his new Meta Superintelligence Labs, spending oodles of cash on NBA-sized pay packages to lure recruits.

So how’s it all going within the company? Things aren’t exactly humming along, according to CNBC.

It reports that the new team has encountered friction within Meta’s corporate structure. The cloistered team is apparently working on a new frontier AI model code-named “Avocado,” which, despite Mark Zuckerberg’s passionate open-source AI manifesto, might turn out to be a proprietary, closed-source model.

Per the report, the many in the company were expecting Avocado to be released before the end of this year, but it’s now planned for Q1 2026.

A Meta spokesperson said, “Our model training efforts are going according to plan and have had no meaningful timing changes.”

Updated to include comments from Meta

tech

Microsoft invests tens of billions for AI infrastructure in India and Canada

In two separate announcements this morning, Microsoft committed to investing tens of billions on AI infrastructure in India and Canada. In India, the company said it will invest $17.5 billion — its largest-ever investment in Asia — from 2026 to 2029, “to advance the country’s cloud and artificial intelligence (AI) infrastructure, skilling, and ongoing operations.”

Microsoft also said it’s adding to its investments in Canada for a total of CA$19 billion (roughly $13.73 billion) between 2023 and 2027 to “build new digital and AI infrastructure needed for the nation’s growth and prosperity.” This includes more than CA$7.5 billion in outlays over the next two years.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.