Netflix may spend up to $600 million on an AI production company. InterPositive Bloomberg

Streaming giant Netflix is set to pay as much as $600 million for artificial intelligence filmmaking startup InterPositive, according to a report by Bloomberg News citing people familiar with the matter.

The report said the actual upfront payment in cash is lower than the headline figure, with additional payouts tied to the company meeting certain performance targets in the future. Netflix did not disclose the financial terms when it announced the deal last week and did not immediately respond to requests for comment.

The acquisition marks Netflix’s first major purchase since it stepped back from a bidding contest involving Warner Bros. Discovery, after a competing proposal from Skydance Media in partnership with Paramount Global was considered more favourable.

InterPositive was founded in 2022 by Oscar-winning actor and filmmaker Ben Affleck. The company focuses on using artificial intelligence to support film production by maintaining cinematic continuity and correcting technical issues such as lighting inconsistencies or missing shots during the editing process.

The deal signals growing acceptance in Hollywood of artificial intelligence tools in filmmaking and content creation. By acquiring InterPositive, Netflix is expected to strengthen its use of AI in production workflows as the streaming industry increasingly looks to technology to improve efficiency, reduce production costs and accelerate content creation.