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Pixar was founded in 1979 as the Graphics Group, a subsidiary of Lucasfilm. Their work consisted of film sequences from Lucasfilm, as well as collaborations with Industrial Light and Magic. In 1986, the group was purchased by Steve Jobs (after he left Apple Computer) and established as the independent company Pixar.

Pixar's main product was the Pixar Image Computer, a high-end graphics computer intended for use in the medical industry. Despite the innovation, there were few sales because of cost and lack of training. It was not until John Lasseter (now Chief Creative Officer at Pixar and Walt Disney Animation Studios) presented his animation experiments at SIGGRAPH that interest in the machine peaked.

Still-slow sales of the Pixar Image Computer (only 300 were ever sold) forced Pixar to seek other avenues for profit. They began producing commercial animations for advertising in 1989. In 1991, Pixar teamed with Walt Disney Productions to develop, produce and distribute three computer animated films. Toy Story, the first of these films, was released in 1995 and went on to gross over $350 million worldwide.

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