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Netflix Buys Startup That Modifies Footage Using AI

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Why This Matters

Netflix's acquisition of AI startup InterPositive highlights the growing reliance on artificial intelligence to reduce production costs and enhance visual effects in Hollywood. This move underscores the industry's push towards integrating AI technologies despite ongoing debates over ethical concerns and actor protections. For consumers, this signals potential changes in how movies are made and the increasing influence of AI in entertainment content creation.

Key Takeaways

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The use of AI in Hollywood has turned into a lightning rod, especially as ongoing contract negotiations between major studios and the Writers Guild of America drag on. Earlier this week, the union released a list of contract demands, including expanded protections over the use and abuse of AI.

On-screen performers and voice actors have also spent many months at the bargaining table with studios over concerns that their likeness and voices could be used without their consent.

But the persistent controversy surrounding the use of AI in Hollywood hasn’t dissuaded executives from striking deals with AI companies. As Bloomberg reports, Netflix is now offering up to $600 million to buy InterPositive, an AI moviemaking company founded by actor Ben Affleck.

Basically, the company offers AI software that modifies existing footage, a capability that clearly has Netflix intrigued as a low-cost alternative to special effects. According to Bloomberg, noted film director David Fincher has already used the tools for an upcoming project starring Brad Pitt — almost certainly “The Adventures of Cliff Booth,” which Netflix has signed on to distribute.

At $600 million — or “as much as $600 million,” in Bloomberg‘s curious framing — the deal is one of the biggest acquisitions of its kind as major production companies, including Netflix and Amazon, continue to bring on AI talent to cut costs.

Walt Disney, for instance, signed a “landmark agreement” with OpenAI to integrate generative AI into its business last year, including a $1 billion equity investment in the Sam Altman-led company.

Netflix’s latest deal with Affleck’s AI startup is unlikely to assuage ongoing fears that Hollywood will leverage AI to undermine the work of human actors.

Nonetheless, Affleck has attempted to paint his foray into AI as a way to enhance storytelling.

“I knew I had a responsibility to my peers and our industry, to protect the power of human creativity and the people behind it,” he said in a statement. “In creating InterPositive, I sought to do just that.”

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