All three projects are being developed under Project Nara, Amazon Web Services’ AI production platform giving access to AI tools for development.

The move reflects broader tensions in the creative community over AI training on established IP and potential copyright issues.

Other projects greenlit under the program include Cupcake & Friends from BuzzFeed Studios and Love, Diana Music Hunters from pocket.watch.

Backlash also touched on The Good Advice Cupcake from BuzzFeed, with creator Loryn Brantz criticizing the use of her IP, prompting BuzzFeed to defend its involvement.

Gutierrez apologized for the controversy surrounding his involvement in Amazon’s GenAI Creators’ Fund, acknowledged concerns about AI in animation, and confirmed he has dropped out of the program, with the Punky Duck project’s future affected by his departure.

Amazon announced the GenAI Creators’ Fund at AI on the Lot, with Punky Duck and two other series slated to stream on Prime Video as part of the initiative.

Gutierrez exited the GenAI Creators’ Fund after online backlash, including edits to his Wikipedia page labeling him a sellout.

No release dates are currently attached to Punky Duck or the other two projects.

Amazon MGM Studios’ representatives did not respond to requests for comment, and Gutierrez remains tied to the GenAI Creators’ Fund as part of AWS’s broader AI production push.

The coverage invites reader engagement and highlights ongoing debates about Gutierrez’s departure and Amazon’s AI initiatives in entertainment.

Reporting is attributed to Dan Sarto, Publisher and Editor-in-Chief of Animation World Network.

The withdrawal is framed within a broader, contentious debate over AI-enabled tools in animation and VFX and their potential disruption to traditional workflows.