He didn't say LLMs can outdo Pixar. That's ridiculous and they are nowhere near that level.
He said that LLMs are at the point "where individuals can outdo Pixar." And that's very possible. The output of a talented individual with the assistance of AI is vastly better than the output of AI alone.
This is a very reductionist take that's to be expected from a software engineer but most definitely something that an artistic person would never utter. The creative process doesn't scale in the way that software engineers imagine. Coming up with genuine new ideas or magical moments of "synthesis" doesn't emerge from throwing lots of commodified tools together and calling it a day.
So far we haven't seen a single iota of creative art coming out of LLMs. Zip. Nada. It's all smoke and mirrors in that we get better and better veneers on top of bad copies of actual art that humans have previously created. The veneers are improving but there is no substance underneath. It's still slop. I don't want to live in a society that doesn't care about substance but instead worships the veneer. Yet this is the place that the current LLMs are taking us.