OpenAI backs first AI feature film

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Welcome to VP Land! OpenAI is making a bold move into feature film production, producing Critterz, an animated movie using AI tools and targeting a 2026 Cannes debut. If they pull this off, this could be a 'Toy Story' moment for AI in filmmaking.

Last poll results show that iPhone 17 Pro’s new features (ProRes RAW, Open Gate, Genlock) are useful but only for specific projects in your workflow.

In today's edition:

OpenAI backs AI-animated feature film Critterz
Nikon introduces ZR with RED's 6K RAW technology at an accessible price
Seedream 4.0 goes head-to-head with Nano Banana
Bending Spoons is buying Vimeo

OpenAI Backs First Major AI Film

OpenAI is backing Critterz, the first major animated feature film created primarily with AI tools, targeting a 2026 Cannes premiere. They say the project cuts typical animation budgets and timelines by roughly 80%.

The film costs under $30 million and takes nine months to produce, compared to $150-200 million and three years for major studio animations.
The project uses human scriptwriters James Lamont and Jon Foster from Paddington in Peru, with voice actors still cast traditionally.
Chad Nelson from OpenAI leads creative development alongside UK's Vertigo Films and LA-based Native Foreign, which specializes in AI production workflows.
Artists create initial sketches that AI processes and enhances, with human animators handling final animation work in a hybrid approach.

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Seedream 4.0 Challenges Google's Nano Banana

ByteDance launched Seedream 4.0, a professional AI image generator that creates 4K images in under 2 seconds, and with similar text prompt editing that equals or surpasses the editing quality of Google's Nano Banana.

Seedream 4.0 generates images in approximately 1.8 seconds using a Mixture-of-Experts architecture, over 10 times faster than its predecessor.
You can upload up to six reference images to maintain visual consistency across character designs, brand assets, or campaign materials.
The platform produces up to nine stylistically consistent images in a single batch, making it useful for storyboards, product catalogs, and visual variations.
Pricing stays at $30 per 1,000 generations despite the speed and quality improvements, positioning it competitively against Google's Gemini 2.5 Flash Image (aka Nano Banana).
ByteDance designed the tool specifically for professional workflows rather than casual mobile users, with integrated editing pipelines that reduce post-processing time.

RED V-RAPTOR XE & Nikon ZR: Pro Cinema Cameras Get More Affordable

RED has unveiled the V-RAPTOR XE, an 8K cinema camera priced at $14,995 that delivers the same large-format global shutter sensor found in its $30K flagship. Designed for indie filmmakers and mid-tier productions, it offers pro-level image quality, flexible lens mounts, and high-frame-rate recording—without premium features most smaller crews don’t need.

Speaking of RED, Nikon has introduced the Nikon ZR, the first model in its new Z CINEMA series, bringing RED’s R3D RAW recording to a $2,200 camera for the first time. Weighing just 540 grams, it records 6K/60p video with 15+ stops of dynamic range, offers 32-bit float audio with Nokia OZO tech, and features a modular design ideal for gimbals, drones, and tight setups. At this price, it undercuts rivals like Sony’s FX3 and Canon’s C70 while delivering cinema-grade tools previously limited to high-end productions.

AI Tool Updates You Should Know

Here’s a recap of the latest AI tool developments this week.

Video

fal launched Lucy-14B, a new AI model that converts static images into 10-second videos with near real-time speed. The 14B parameter model promises the fastest image-to-video generation on the market at $0.08 per video second.
VEED.IO announced Fabric 1.0, positioning it as the world's first AI talking video model that creates hyper-realistic avatars from your likeness and voice. The tool launches this month with promises to drastically cut production time for talking head content.
ByteDance released its USO (Unified Style-Subject Optimized) model with native support in ComfyUI, giving creators the first open-source tool that handles both style transfer and character consistency in a single workflow.
Sync Labs released Lipsync-2-Pro, an AI tool that creates studio-grade lip synchronization for any video without requiring speaker-specific training data. The model works across live-action footage, animation, and AI-generated content at resolutions up to 4K.

Audio

Stability AI launched Stable Audio 2.5, positioning it as the first AI audio model built specifically for enterprise sound production at scale. The tool can generate three-minute tracks in under two seconds on high-end GPUs and targets commercial creative teams with fully licensed training data.

Utility AI

Google's NotebookLM can now generate study aids like flashcards and quizzes, create more types of reports, and explore curated notebooks from OpenStax. A new Learning Guide feature that works like a personal will launch soon, alongside new audio overview formats.
Alibaba introduced Qwen3-Next-80B-A3B, a flagship AI model that delivers high-end performance while using 10x less computing power through sparse activation, enabling long-context reasoning and creative tasks like script analysis and code generation. This shift from bigger-is-better to smarter-is-better AI makes powerful tools accessible to independent filmmakers and global creative teams without enterprise-level hardware.

Two Minute Papers explores how Intel-backed research on Gaussian splats could transform computer graphics, movies, and video games with real-time realism.

Stories, projects, and links that caught our attention from around the web:

⚽ Barcelona Football Club has entered a new partnership with Adspective aimed at enhancing the team's media presence through innovative advertising solutions.

🤝 Digital art platforms KitBash3D and Greyscalegorilla have announced a merger to combine their 3D asset and motion design tools for creators.

🟢 Bitfocus has introduced a license-free option that allows users to try Buttons for real without software costs.

🔁 MASV debuts real-time file transfers and smart automation features for media workflows at IBC2025.

🗄️ Storage solutions company iodyne is showcasing its Pro Data Firmware 1.6 with new cross-platform support at IBC2025.

🕹️ Epic Games has released the free Sports Broadcast Motion Design Sample, offering more than 40 fully rigged assets for Unreal Engine users.

⚡ The new TeamCache solution from LucidLink offers remote film production teams to local-class file access speeds for media workflows.

🚀 Maxon has launched a unified ecosystem designed to provide users with streamlined workflows, speed, and flexibility across its suite of creative tools.

☁️ CREE8 has acquired Edit Cloud to expand its footprint in cloud-based production workflows.

💰 Executives predict Wizard of Oz at Sphere could surpass $100 million in revenue within a year, highlighting the success of this AI-enhanced film attraction.

📺 Video platform Vimeo is set to be acquired by Bending Spoons in a $1.38 billion deal.

🐰 Rabbit Inc. has unveiled a major overhaul of rabbitOS, introducing rabbitOS 2 + creations to enhance the user experience on its R1 device.