Early history in
Mountain View with the 1986–95 logo on it Pixar got its start in 1974, when
New York Institute of Technology's founder,
Alexander Schure, who was also the owner of a traditional animation studio, established the
Computer Graphics Lab (CGL) and recruited
computer scientists who shared his ambitions about creating the world's first computer-animated film.
Edwin Catmull and Malcolm Blanchard were the first to be hired and were soon joined by
Alvy Ray Smith and
David DiFrancesco some months later, who were the four original members of the Computer Graphics Lab, located in a converted two-story garage acquired from the former
Vanderbilt-
Whitney estate. Schure invested significant funds into the computer graphics lab, approximately $15 million, providing the resources the group needed but contributing to NYIT's financial difficulties. Eventually, the group realized they needed to work in a real
film studio to reach their goal.
Francis Ford Coppola then invited Smith to his house for a three-day media conference, where Coppola and
George Lucas shared their visions for the future of digital moviemaking. When Lucas approached the group and offered them jobs at his studio, six employees moved to
Lucasfilm. During the following months, they gradually resigned from CGL, found temporary jobs for about a year to avoid making Schure suspicious, and joined the Graphics Group at Lucasfilm. The Graphics Group, which was one-third of the Computer Division of Lucasfilm, opened in 1979 with the hiring of Catmull from NYIT, where he was in charge of the Computer Graphics Lab. He was then reunited with Smith, who also made the journey from NYIT to Lucasfilm, and was made the director of the Graphics Group. At NYIT, the researchers pioneered many of the CG foundation techniques — in particular, the invention of the
alpha channel by Catmull and Smith. Over the next several years, the CGL would produce a few frames of an experimental film called
The Works. After moving to Lucasfilm, the team worked on creating the precursor to
RenderMan, called REYES (for "renders everything you ever saw"), and developed several critical technologies for CG — including
particle effects and various animation tools.
John Lasseter was hired to the Lucasfilm team for a week in late 1983 with the title "interface designer"; he animated the short film
The Adventures of André & Wally B. In the next few years, a designer suggested naming a new digital compositing computer the "Picture Maker". Smith suggested that the laser-based device have a catchier name, and came up with "Pixer", which after a meeting was changed to "Pixar". According to
Michael Rubin, the author of
Droidmaker: George Lucas and the Digital Revolution, Smith and three other employees came up with the name during a restaurant visit in 1981, but when interviewing them he got four different versions about the origin of the name. In 1982, the Pixar team began working on special-effects film sequences with
Industrial Light & Magic. After years of research, and key milestones such as the Genesis Effect in
Star Trek II: The Wrath of Khan and the Stained Glass Knight in
Young Sherlock Holmes, They also used
SGI computers. In 1983,
Nolan Bushnell founded a new computer-guided animation studio called Kadabrascope as a subsidiary of his
Chuck E. Cheese's Pizza Time Theatres company (PTT), which was founded in 1977. Only one major project was made out of the new studio, an animated Christmas special for
NBC starring Chuck E. Cheese and other PTT mascots; known as "Chuck E. Cheese: The Christmas That Almost Wasn't". The animation movement would be made using
tweening instead of traditional cel animation. After the
video game crash of 1983, Bushnell started selling some subsidiaries of PTT to keep the business afloat.
Sente Technologies (another division, was founded to have games distributed in PTT stores) was sold to
Bally Games and Kadabrascope was sold to Lucasfilm. The Kadabrascope assets were combined with the Computer Division of Lucasfilm. Coincidentally, one of
Steve Jobs's first jobs was under Bushnell in 1973 as a technician at his other company
Atari, which Bushnell sold to
Warner Communications in 1976 to focus on PTT. PTT would later go bankrupt in 1984 and be acquired by
ShowBiz Pizza Place.
Independent company (1986–1999) '' figure display in
Hong Kong In 1986, the newly independent Pixar was headed by President
Edwin Catmull and Executive Vice President
Alvy Ray Smith. Lucas's search for investors led to an offer from
Steve Jobs, which Lucas initially found too low. He eventually accepted after determining it impossible to find other investors. At that point, Smith and Catmull had been declined by 35 venture capitalists and ten large corporations, including a deal with
General Motors which fell through three days before signing the contracts. Jobs, who had been edged out of
Apple in 1985, At the time,
Walt Disney Studios made the decision to develop more efficient ways of producing animation. They reached out to Graphics Group at Lucasfilm and to
Digital Productions. Because of the Graphics Group's deeper understanding of animation, and Smith's experience with paint programs at NYIT, it convinced Disney they were the right choice. In May 1986 Pixar signed a contract with Disney, who eventually bought and used the Pixar Image Computer and custom software written by Pixar as part of its
Computer Animation Production System (CAPS) project, to migrate the laborious ink and paint part of the 2D animation process to a more automated method. The company's first feature film to be released using this new animation method was
The Rescuers Down Under (1990). In a bid to drive sales of the system and increase the company's capital, Jobs suggested releasing the product to the mainstream market. Pixar employee John Lasseter, who had long been working on not-for-profit short demonstration animations, such as
Luxo Jr. (1986) to show off the device's capabilities, premiered his creations to great fanfare at
SIGGRAPH, the computer graphics industry's largest convention. However, the Image Computer had inadequate sales In April 1990, Pixar sold its hardware division, including all proprietary hardware technology and imaging software, to Vicom Systems, and transferred 18 of Pixar's approximately 100 employees. In the same year Pixar moved from
San Rafael to
Richmond, California. Pixar released some of its software tools on the open market for Macintosh and Windows systems.
RenderMan is one of the leading 3D packages of the early 1990s, and
Typestry is a special-purpose 3D text renderer that competed with RayDream. During this period of time, Pixar continued its successful relationship with
Walt Disney Feature Animation, a studio whose corporate parent would ultimately become its most important partner. As 1991 began, however, the layoff of 30 employees in the company's computer hardware department (including the company's president, Chuck Kolstad), reduced the total number of employees to just 42, approximately its original number. On March 6, 1991, Steve Jobs bought the company from its employees and became the full owner. He contemplated folding it into NeXT, but the NeXT's co-founders refused. By then the software programmers working on RenderMan and IceMan, and Lasseter's animation department, which made television commercials (and four Luxo Jr. shorts for
Sesame Street the same year), were all that remained of Pixar. Despite the income from these projects, the company still continued to lose money, and Steve Jobs, as chairman of the board and now owner, often considered selling it. As late as 1994, Jobs contemplated selling Pixar to other companies such as
Hallmark Cards,
Microsoft co-founder
Paul Allen, and
Oracle CEO and co-founder
Larry Ellison. After learning from New York critics that
Toy Story would probably be a hit, and confirming that Disney would distribute it for the 1995 Christmas season, he decided to give Pixar another chance. Also for the first time, he took an active leadership role in the company and made himself CEO.
Toy Story grossed more than $448 million worldwide and, when Pixar held its
initial public offering on November 29, 1995, trading as "PIXR" on
NASDAQ, it exceeded
Netscape's as the biggest IPO of the year. In its first half-hour of trading, Pixar stock shot from $28 to $45, delaying trading because of unmatched buy orders. Shares climbed to and closed the day at $42. The company continued to make the television commercials during the production of
Toy Story, which came to an end on July 9, 1996, when Pixar announced they would shut down its television commercial unit, which counted 18 employees, to focus on longer projects and interactive entertainment. During the 1990s and 2000s, Pixar gradually developed the "Pixar Braintrust", the studio's primary creative development process, in which all of its directors, writers, and lead storyboard artists regularly examine each other's projects and give very candid "notes", the industry term for
constructive criticism. The Braintrust operates under a philosophy of a "filmmaker-driven studio", in which creatives help each other move their films forward through a process somewhat like
peer review, as opposed to the traditional Hollywood approach of an "executive-driven studio" in which directors are
micromanaged through "mandatory notes" from development executives outranking the producers. According to Catmull, it evolved out of the working relationship between Lasseter,
Andrew Stanton,
Pete Docter,
Lee Unkrich, and
Joe Ranft on
Toy Story. Though profitable for both, Pixar later complained that the arrangement was not equitable. Pixar was responsible for creation and production, while Disney handled
marketing and distribution. Profits and production costs were split equally, but Disney exclusively owned all story, character, and sequel rights and also collected a 10%-15% distribution fee. The two companies attempted to reach a new agreement for ten months and failed on January 26, 2001, July 26, 2002, April 22, 2003, January 16, 2004, July 22, 2004, and January 14, 2005. The proposed distribution deal meant Pixar would control production and own the resulting story, character, and sequel rights, while Disney would own the right of first refusal to distribute any sequels. Pixar also wanted to finance its own films and collect 100% profit, paying Disney the 10%-15% distribution fee. In addition, as part of any distribution agreement with Disney, Pixar demanded control over films already in production under the old agreement, including
The Incredibles (2004) and
Cars (2006). Disney considered these conditions unacceptable, but Pixar would not concede. Disagreements between Steve Jobs and Disney chairman and CEO
Michael Eisner caused the negotiations to cease in 2004, with Disney forming
Circle Seven Animation and Jobs declaring that Pixar was actively seeking partners other than Disney. Despite this announcement and several talks with
Warner Bros.,
Sony Pictures, and
20th Century Fox, Pixar did not enter negotiations with other distributors, although a Warner Bros. spokesperson told
CNN, "We would love to be in business with Pixar. They are a great company."
Walt Disney Studios subsidiary (2006–present) After extended negotiations, Disney ultimately agreed on January 24, 2006, to buy Pixar for approximately $7.4 billion in an
all-stock deal. Following Pixar
shareholder approval, the acquisition was completed on May 5, 2006. The transaction catapulted Jobs, who owned 49.65% of total share interest in Pixar, to Disney's largest individual shareholder with 7%, valued at $3.9 billion, and a new seat on its board of directors. Jobs' new Disney holdings exceeded holdings belonging to Eisner, the previous top shareholder, who still held 1.7%; and Disney Director Emeritus
Roy E. Disney, who held almost 1% of the corporation's shares. Pixar shareholders received 2.3 shares of Disney common stock for each share of Pixar common stock redeemed. As part of the deal, John Lasseter, by then Executive Vice President, became
Chief Creative Officer (reporting directly to president and CEO
Bob Iger and consulting with Disney Director Roy E. Disney) of both Pixar and
Walt Disney Animation Studios (including its division
Disneytoon Studios), as well as the Principal Creative Adviser at
Walt Disney Imagineering, which designs and builds the company's
theme parks. After the deal closed in May 2006, Lasseter revealed that Iger had felt that Disney needed to buy Pixar while watching a parade at the opening of
Hong Kong Disneyland in September 2005. Iger noticed that of all the Disney characters in the parade, none were characters that Disney had created within the last ten years since all the newer ones had been created by Pixar. Lasseter and Catmull were wary when the topic of Disney buying Pixar first came up, but Jobs asked them to give Iger a chance (based on his own experience negotiating with Iger in summer 2005 for the rights to
ABC shows for the fifth-generation
iPod Classic), and in turn, Iger convinced them of the sincerity of his feeling that Disney needed to re-focus on animation. Some of those conditions were that Pixar
HR policies would remain intact, including the lack of employment contracts. Also, the Pixar name was guaranteed to continue, and the studio would remain in its current
Emeryville, California, location with the "Pixar" sign. Finally, branding of films made post-merger would be "Disney•Pixar" (beginning with
Cars).
Jim Morris, producer of
WALL-E (2008), became general manager of Pixar. In this new position, Morris took charge of the day-to-day running of the studio facilities and products. After a few years, Lasseter and Catmull were able to successfully transfer the basic principles of the Pixar Braintrust to Disney Animation, although meetings of the Disney Story Trust are reportedly "more polite" than those of the Pixar Braintrust. Catmull later explained that after the merger, to maintain the studios' separate identities and cultures (notwithstanding the fact of common ownership and common senior management), he and Lasseter "drew a hard line" that each studio was solely responsible for its own projects and would not be allowed to borrow personnel from or lend tasks out to the other. The rule ensures that each studio maintains "local ownership" of projects and can be proud of its own work. The roughly 2,000 square meters studio produced seven short films based on
Toy Story and
Cars characters. In October 2013, the studio was closed down to refocus Pixar's efforts at its main headquarters. In November 2014, Morris was promoted to president of Pixar, while his counterpart at Disney Animation, general manager Andrew Millstein, was also promoted to president of that studio. Both continued to report to Catmull, who retained the title of president of both Disney Animation and Pixar. On June 8, 2018, it was announced that Lasseter would leave Disney Animation and Pixar at the end of the year, but would take on a consulting role until then. Pete Docter was announced as Lasseter's replacement as chief creative officer of Pixar on June 19, 2018.
Sequels and financial success (2018–2019) On June 15, 2018,
Incredibles 2 was released, setting a record for widest opening weekend worldwide and domestic for an animated film. The film would eventually gross $1.2 billion worldwide. On October 23, 2018, it was announced that Catmull would be retiring. He stayed in an adviser role until July 2019. On January 18, 2019, it was announced that Lee Unkrich would be leaving Pixar after 25 years although he would return to the studio a few years later. On June 21, 2019,
Toy Story 4 was released, surpassing the widest opening worldwide weekend record that
Incredibles 2 set. The film would make over $1 billion and win the Academy Award for Best Animated Feature. During the
2019 D23 Expo, Pixar announced that their next film,
Soul, would release in 2020. Ahead of the launch of
Disney+, Pixar debuted
SparkShorts, experimental shorts done by Pixar staff.
COVID-19 pandemic, Disney+ releases, and some financial struggles (2020–present) Pixar released
Onward on March 6, 2020. However, due to the start of the
COVID-19 pandemic, the film underperformed at the box office and was released onto rental digital services on March 20, and later on
Disney+ on April 3. Due to the pandemic,
Soul was moved to November 2020, and ultimately released on December 25, 2020, on Disney+ at no additional cost to subscribers, and later became the first animated streaming film to win the
Academy Award for Best Animated Feature. Pixar's next two features,
Luca and
Turning Red, were also released free on Disney+ in June 2021 and March 2022, respectively. In 2021, several Pixar employees anonymously criticized Disney's decision to release their films direct to Disney+.
Lightyear, Pixar's first movie to return to theaters, was released in June 2022. The film became a
box-office failure with
Deadline Hollywood calculating the film lost the studio $136 million, when factoring together all expenses and revenues. In September 2022, Jonas Rivera was promoted to Executive VP of Film Production at Pixar overseeing all film and streaming production. In December 2022, Disney CEO Bob Iger noted that they would rely more on the Pixar brand. In June 2023, Disney laid off 75 employees including the director of
Lightyear Angus MacLane, and the film's producer Galyn Susman. During that same month,
Elemental was released. During the film's opening weekend, Docter stated that Pixar "trained audiences that these films will be available for you on Disney+". Despite opening below projections,
Elemental ultimately made a box office comeback by early August 2023, crossing $430 million at the worldwide box office. Disney's
EVP of Theatrical Distribution Tony Chambers stated "After a disappointing opening weekend, we're really pleased that audiences have discovered what a great movie it is." That same month, Morris said "at the box office we're looking at now, [the film] should do better than break even theatrically. And then we have revenue from
streaming,
theme parks and
consumer products. This will certainly be a profitable film for the Disney company." In December 2023, it was announced that
Soul,
Turning Red and
Luca would be released in theaters in the United States in the first quarter of 2024. In January 2024, it was reported that Pixar's staff would face imminent layoffs by 20 percent, reducing the studio's workforce to less than 1,000 employees. However, the layoffs were then delayed and did not occur, reportedly because of production schedules. In May 2024, the studio proceeded with slightly smaller layoffs: 175 employees or approximately 14 percent of the studio's workforce of over 1,300 employees. The layoffs occurred as the studio began to rely less on direct-to-streaming series and more on feature films intended primarily for theatrical exhibition.
Dream Productions, an
Inside Out spin off series set between the first and second film, was released on December 11, 2024, on Disney+. In June 2025, Pixar released their next film
Elio. The film had the lowest box office opening for a Pixar film to date, earning $25 million, and an all-time low global opening of $39 million. In an op-ed, Rebecca Rubin for
Variety noted that
Elio faced stiff box office competition against the 2025 live-action remakes of
How to Train Your Dragon and Disney's
Lilo & Stitch. Shawn Robbins for
Fandango observed, "Competition from family audiences was difficult to overcome. It makes you wonder how
Elio would have performed in the spring, or even a week or two later." Rubin wrote that similar to
Elemental,
Elio could have steady box office longevity thanks to favorable reviews and positive word-of-mouth. On September 17, 2025,
Elio began streaming on Disney+ and became one of the top-streaming titles for that week. == Campus ==