According to The Wall Street Journal, the project whose characters and story were designed three years ago aims to premiere at the 2026 Cannes Film Festival.
Nelson and his team will upload the initial character sketches into OpenAI's tools and create the entire animation with AI support.
The film is planned to be completed in just nine months with a modest $30 million budget, while voice acting will be performed by human actors.
The film will be produced by London-based Vertigo Films and Los Angeles-based Native Foreign, the latter known for using AI technologies in traditional video production.
Nelson noted that this film could pave the way for wider use of AI in the industry.
Concerns over AI in cinema remain. Two years ago, the U.S. actors' union SAG-AFTRA went on strike over fears of job losses due to AI, eventually securing job protections after lengthy negotiations.
At this year's Oscars, AI elements in the films "The Brutalist" and "Emilia Perez" sparked debate, though the Academy declared it was taking a "neutral" stance on AI use.
With "Critterz", OpenAI aims to demonstrate that AI-assisted films completed quickly and at lower cost can also find a place in the industry.
