Valve is collaborating with the director Shane Acker and the Irish production company Brown Bag Films on his new animated feature film.
According to a report in the Chicago Tribune, the film, Deep, will use technology based on Valve's Source engine for rendering, editing, animation and lighting.
It will also allow Acker - whose previous film was the 2009 feature "9" - and Brown Bag Films to produce a video game based on the film. Valve's Steam platform is also being considered as a possible distribution platform.
Deep is currently in pre-production. It has a proposed budget of €15 million.