The letters GIF stand for Graphics Interchange Format, an image format that a CompuServe team led by Steve Wilhite released on 15 June 1987. Its creator said it's pronounced with a soft g, like "jif", but most people use a hard g, and the major dictionaries accept both.
What the format does
A GIF is an image file with two traits that explain why it stuck around. It can hold up to 256 colours per image, which keeps files small, and it can hold several images in one file, which is how the looping animations work. As the BBC reported in 2013, the compression Wilhite used meant images could be sent over the slow dial-up connections of the time much faster than before.
That's why the animated reaction images you send in chats are still called GIFs today, and why most apps have a GIF button.
Jif or gif: the long argument
When Wilhite was honoured with a Lifetime Achievement Award at the 2013 Webby Awards for inventing the format, he used the moment to settle the question his way: soft g, "jif". Wikipedia says he meant the sound to echo the Jif peanut butter brand.
It didn't settle anything. The BBC reported that the Oxford English Dictionary accepts both pronunciations, and that the OED said it was beyond Wilhite's control to fix one. Wikipedia notes that Merriam-Webster and Oxford list both with the hard g first, while Cambridge lists only the hard g, and that polls show the hard g is the more common choice.
Wikipedia records that Wilhite died on 14 March 2022. The format he built is still in daily use.
Which way should you say it?
Honestly, whichever you like. The creator's view is clear, everyday use disagrees with him, and nobody can enforce either. If you present to clients or record videos, pick one and stay consistent, so you don't sound unsure. What matters more is what the letters mean: Graphics Interchange Format, whichever g you use.
Quick answers about GIFs
Who invented the GIF?
Steve Wilhite, leading a team at CompuServe, released the format in 1987.
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How is GIF pronounced?
The creator said jif with a soft g. The hard g is more common, and dictionaries accept both.
Why did GIF suit the early internet?
According to the BBC, its compression let images send much faster over slow dial-up connections.
How can a GIF move?
A GIF file can hold several images, and showing them in sequence is what makes the animation.
How many colours can a GIF use?
Up to 256 colours per image.