Netflix is making a significant investment in artificial intelligence, spending over $500 million to acquire a leading AI company in the entertainment industry.
Netflix recently purchased InterPositive, an AI film technology company founded by Ben Affleck. The streaming service revealed in a recent financial filing that the acquisition cost $587 million. The company, based in Los Gatos, made the disclosure in a report to the Securities and Exchange Commission last week.
InterPositive started in 2022, driven by Affleck’s concerns about the potential impact of AI on filmmaking.
According to a recent announcement, Netflix is creating AI tools specifically for filmmakers, designed to give them more creative control. The company is investing in these technologies to ensure filmmakers remain in charge of the creative process, and these tools will only be available on Netflix.
Netflix declined to comment on the disclosure about the value of its acquisition.
During last week’s earnings discussion, Netflix’s Ted Sarandos mentioned that their partnership with InterPositive is just starting to develop.
According to Ted Sarandos, while it’s still new, generative AI is already affecting many of InterPositive’s projects – hundreds, in fact.
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Netflix shares dropped 11% Thursday morning after investors worried about the company’s growth prospects based on its latest quarterly earnings report.
According to him, around 300 shows and movies are now using artificial intelligence as part of how they’re made. The company primarily employs this technology during post-production – things like editing and visual effects – and specifically uses generative AI for particularly challenging scenes, Sarandos explained.
He explained that they’re now able to produce better results faster and with less effort than before, thanks to the new methods they’re using.
He pointed to the documentary “The American Experiment,” which featured Tom Hanks as an executive producer, as a good illustration of his point.
According to Sarandos, the docuseries included 17 minutes of footage created with artificial intelligence, which was made in half the time and for half the price of traditional methods.
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Netflix’s stock has dropped significantly this year – down 21% – as some investors worry about how much the company will grow in the years ahead.
Netflix announced that with this purchase, they’ll be adding all of InterPositive’s employees and retaining Affleck as a consultant.
The company’s investment in AI comes as Netflix is facing uncertainty.
Netflix’s stock price dropped sharply after the company released its latest financial results. Shares were down 2% on Monday, closing at $67.60.
The company’s latest financial results for the second quarter have made investors and industry experts worried about how much it will grow in the future.
Netflix updated its financial prediction for 2026, now expecting revenue between $51 billion and $51.4 billion, a slight adjustment from its previous forecast of $50.7 billion to $51.7 billion.
I was really interested to hear that when Ben Affleck started InterPositive, his big goal was to make sure stories stayed, well, human. To do that, he didn’t just rely on existing data – he actually built a special dataset from scratch, working with engineers on a soundstage to create the foundation for their first AI model. It’s cool that he’s putting so much emphasis on keeping the heart in storytelling, even with AI involved.
He explained that the model is designed to grasp visual storytelling and maintain a consistent look, even when facing common filmmaking problems like missing footage, swapped backgrounds, or bad lighting. Importantly, it’s built to support artists and let them remain in control of the creative process.
Much of Hollywood is critical of the technology and skeptical of the larger companies in the space.
The actors union, SAG-AFTRA, recently reached a new agreement with major film and television studios that includes rules about using artificial intelligence. These rules prioritize and protect the work of human actors, ensuring AI is used responsibly and doesn’t replace performers.
This month, Tilly Norwood – an AI character that’s been generating buzz – landed her first acting job. Created by Particle 6, she’ll be the star of a new comedy-drama series titled “Misaligned.”
2026-07-21 13:34