'anime' originates from Japanese, specifically the word 「アニメ」, a clipping of 「アニメーション」, itself borrowed from English 'animation' (ultimately from Latin 'anima' meaning 'soul; life').

'anime' changed from Japanese 「アニメ」 (from 「アニメーション」) and entered English in the late 20th century, coming to denote Japanese animation and becoming the modern English word 'anime'.

Initially, it meant 'animation (in general)' in Japanese, but in English it narrowed to its current meaning of 'Japanese animation (and works in its style)'.