Amazon MGM AI Fund: Three Series Greenlit, One Director Out

Amazon MGM Studios announced a GenAI Creators' Fund at AI On The Lot on May 27, 2026, greenlighting three animated Prime Video series built on its proprietary AI production platform. Within 48 hours, one of the named creators withdrew.

Three Series, One Platform

The fund is a partnership between Amazon MGM Studios and Amazon Web Services. Three projects were greenlit at launch: "Punky Duck," attached to Jorge R. Gutierrez, director of The Book of Life; "Love, Diana Music Hunters," produced by former Nickelodeon president Albie Hecht; and "Cupcake & Friends" from BuzzFeed Studios.

All three are animated series intended for Prime Video. The productions will use Project Nara, Amazon's proprietary AI production system trained on Amazon MGM Studios IP and integrated with Maya, Blender, Nuke, Unreal Engine, and the Adobe Suite.

"I Will Not Be Making Punky Duck"

Within 48 hours of the announcement, Gutierrez issued a public statement: "I have decided to drop out of the AI program at Amazon. I will not be making a Punky Duck series".

The withdrawal followed backlash from the animation community. Gutierrez, whose 2014 feature The Book of Life earned him a wide following among animators, had been the marquee name attached to the fund's launch.

No replacement creator for Punky Duck was announced. The other two projects, "Love, Diana Music Hunters" and "Cupcake & Friends," remained in the fund following Gutierrez's departure.

AI On The Lot 2026

The GenAI Creators' Fund was announced at AI On The Lot, held May 27-28 at the Amazon MGM Studios lot in Culver City. The 2026 edition of the conference drew 2,460 attendees, nearly double the 1,256 who attended in 2025.

Amazon MGM Studios has been building its AI production infrastructure since closed beta testing began in early 2026. Project Nara is the public result of that development. A studio executive at the conference claimed AI reduced one unnamed film's production budget from $150 million to $70 million, though no specific project was identified.

The labor context around announcements like this remains active. SAG-AFTRA ratified a four-year deal in June 2026 that includes provisions requiring synthetic performers to deliver "significant additional value" before they can substitute for live actors. The GenAI Creators' Fund targets animation rather than live action, putting it outside the direct scope of those provisions.

For filmmakers who want to work with AI tools on their own creative projects, the AI FILMS Studio video workspace offers text-to-video and image-to-video generation without a studio partnership required.

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Sources

Variety | Deadline | The Hollywood Reporter | IndieWire | The Wrap