Pipsqueak Animation’s Mike Blum remains defiant after long-term client turns to AI

LA-based Pipsqueak Animation founder Mike Blum has backed his studio’s ability to evolve after confirming it is losing work to AI, which he said “does not bode well” for the future.

Mike Blum

Animation veteran Blum, who serves as co-chair of the animation committee within the Producers Guild of America, took to LinkedIn this week to confirm an undisclosed client has chosen to use AI rather than Pipsqueak Animation.

“It happened to us. We lost work to AI. I don’t mean we bid on a job and the client ended up using AI to do it. I mean one of our favourite long-term clients started using AI to make half of the stuff we used to do for them,” Blum posted.

“I’m not gonna name the company or the specifics – we still love them and do work for them – but I was pretty shocked. Why? These are our most inexpensive products. Crazy cheap. Just a small amount of art, but a lot of meticulous editing work. We make money because of the volume, not on the individual pieces.

“So I asked them, ‘Why the change?’ They said clients wanted cheaper. To which I replied, ‘I don’t see how anyone can do these cheaper unless you’ve figured out a way to edit them with AI.’ To which they replied, ‘Yep.'”

Pipsqueak, which describes itself as a boutique animation studio, has completed service work for clients including major US broadcasters and streamers in the past.

Blum, who has created and sold animated properties to outlets like Cartoon Network, DreamWorksTV, Disney, Lion Forge Animation and Sesame Street, said he can only see the trend continuing as more companies consider using AI tools to cut costs.

“This is all pretty fresh, so I don’t have any big takeaways yet. But I can tell you that if this absolutely lovely company, which hugely values handcrafted animation, is making these kinds of financial decisions, it does not bode well for what’s rolling down the hill at increasing velocity! But fear not, we are nothing if not adaptable! Adapt or die, baby!” said Blum.

Prior to launching Pipsqueak in 2012, Blum was an executive at Walt Disney Feature Animation. His numerous animation credits include Chicken Little, Lilo & Stitch and The Hunchback of Notre Dame.

Blum and Pipsqueak are also behind Barkster Kid Songs, the song-based, social/emotional learning series on YouTube for preschoolers.