Alvy Ray Smith
Smith and Catmull co-founded Pixar in 1986 with financing from Steve Jobs. After the spinout from Lucasfilm of Pixar, he served on the board of directors and was executive vice president. According to the Steve Jobs biography "iCon" by Jeffrey S. Young and William L. Simon, Alvy Ray quit Pixar after a heated argument with Jobs over use of a whiteboard. It was an unwritten rule that none other than Jobs was allowed to use it, a rule Smith decided to break in front of everyone after Jobs went "total street bully" on him and they ended up screaming into each other's face "in full bull rage". Despite being the co-founder of Pixar, Young and Simon claim that the company has largely overlooked his part in company history since his departure. For example, there is no mention of Smith on the Pixar website.
Pixar
In 1982, the team began working on special effects film sequences with Industrial Light & Magic. After years of research, and key milestones such as the Genesis Effect in "" and the Stained Glass Knight in "Young Sherlock Holmes", the group, which then numbered 40 individuals, was spun out as a corporation in February 1986 by Catmull and Smith. Among the 38 remaining employees, there were also Malcolm Blanchard, David DiFrancesco, Ralph Guggenheim, and Bill Reeves, who had been part of the team since the days of NYIT. Tom Duff, also an NYIT member, would later join Pixar after its formation. With Lucas' 1983 divorce, which coincided with the sudden dropoff in revenues from "Star Wars" licenses following the release of "Return of the Jedi", they knew he would most likely sell the whole Graphics Group. Worried that the employees would be lost to them if that happened, which would prevent the creation of the first computer animated movie, they concluded that the best way to keep the team together was to turn the group into an independent company. But Moore's Law also said that the first film was still some years away, and they needed to focus on a proper product while waiting for computers to become powerful enough. Eventually, they decided they should be a hardware company in the meantime, with their Pixar Image Computer as the core product, a system primarily sold to government agencies and the scientific and medical community.