📽️ Netflix starts using Generative AI

Welcome, AI enthusiasts

Netflix used generative AI to create a scene in the sci-fi series The Eternaut, a first for one of the streamer’s original shows or films. During an earnings call, Netflix co-CEO Ted Sarandos said the use of AI was faster than using traditional visual effects tools and helped cut costs. Let’s dive in! 

In today’s insights:

• Netflix uses generative AI in a big sci-fi hit to cut costs

• Only 1 human defeats AI model in coding championship

• OpenAI, Google DeepMind, Anthropic and Meta sound alarm

Read time: 4 minutes

LATEST DEVELOPMENTS

NETFLIX
🎞️ Netflix uses generative AI in a big sci-fi hit to cut costs

Evolving AI: Netflix has admitted to using generative AI to create final footage in one of its major sci-fi productions.

Key Points:

• Netflix used GenAI to render a building collapse in the Argentine series El Eternauta.

• The scene was completed 10x faster and at lower cost than traditional methods.

• Netflix says creators are already benefiting from AI in VFX, planning, and production.

Details:

Netflix has started integrating generative AI into its original productions. In a post-earnings call, co-CEO Ted Sarandos said El Eternauta includes “the very first GenAI final footage to appear on screen,” referring to an AI-generated scene of a collapsing building. According to Sarandos, the scene was finished ten times faster and for less money than with traditional VFX. He emphasized that these are real artists using better tools, not replacements. AI is also helping with pre-visualization, shot planning, and effects that were once limited to big-budget films, like de-aging. Co-CEO Greg Peters added that Netflix is expanding AI use into search, personalization, and ad targeting, with plans to roll out interactive ads this year.

Why It Matters:

It has happened. Netflix quietly slipping AI into a major sci-fi series is a sign of where things are headed. It’s not just pre-production experiments anymore, it’s final shots in real shows. Big studios are starting to see generative tools as part of the regular workflow. That means faster turnarounds, cheaper effects, and way more pressure on human artists to keep up or adapt. And if this keeps scaling, it could change who gets hired and how movies get made.

The Key to a $1.3T Opportunity

A new trend in real estate is making the most expensive properties obtainable. It’s called co-ownership, and it’s revolutionizing the $1.3T vacation home market.

The company leading the trend? Pacaso. Created by the founder behind a $120M prior exit, Pacaso turns underutilized luxury properties into fully-managed assets and makes them accessible to the broadest possible market.

The result? More than $1b in transactions and service fees, 2,000+ happy homeowners, and over $110m in gross profits for Pacaso.

With rapid international growth and 41% gross profit growth last year, Pacaso is hitting their stride. They even recently reserved the Nasdaq ticker PCSO.

Invest in Pacaso as a private company and join notable investors like Maveron and Greycroft for just $2.90/share.

Invest in Pacaso today.

_{Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com.}

AI IN CODING
👨‍💻 Only 1 human defeats AI model in coding championship

Evolving AI: A Polish programmer beat an OpenAI model in a 10-hour world coding contest, but just barely.

Key Points:

• Przemysław Dębiak outscored OpenAI’s AI in the AtCoder World Tour Finals Heuristic contest.

• The AI placed second overall, ahead of 10 top human contestants.

• Dębiak, a former OpenAI employee, called the win exhausting and possibly short-lived.

Details:

AtCoder, a top competitive programming platform, hosted a unique “Humans vs AI” exhibition match during its 2025 World Tour Finals in Tokyo. The event featured 12 elite programmers, including a custom AI model from OpenAI. In the 10-hour Heuristic round, where there’s no perfect solution and only better guesses, Dębiak scored roughly 9.5% higher than the AI, winning the contest. Both human and AI used the same hardware and tools. OpenAI framed the second-place result as a milestone, saying its models are learning to plan and adapt like humans in long, strategic tasks.

Why It Matters:

This win shows that humans still bring something different. Creativity, gut instinct, unconventional problem-solving. AI is getting faster and more refined. On SWE-bench, a benchmark that tests real coding ability, scores jumped from 4.4 percent in 2023 to 71.7 percent in 2024. But Dębiak’s win proves those numbers don’t tell the full story. In long, complex challenges, humans can still outperform machines. As AI takes over more routine coding, there's still a place for human input on the hard, unusual problems.

SILICON VALLEY
🚨 OpenAI, Google DeepMind, Anthropic and Meta sound alarm

Evolving AI: OpenAI, DeepMind, Anthropic and Meta warn we may soon lose the ability to monitor how AI thinks.

Key Points:

• Top AI firms have united to warn about a fragile but critical safety window.

• Chain-of-thought (CoT) reasoning lets humans see how AI thinks, for now.

• New architectures and training methods may make AI thinking unreadable.

Details:

Over 40 researchers from OpenAI, DeepMind, Anthropic and Meta just published a joint paper warning that our short window to observe how AI reasons may close. The paper highlights how newer AI models show their thought process in language before answering. This chain-of-thought reasoning gives researchers a way to spot issues before the model acts. But this visibility is fragile. Reinforcement learning, new architectures and optimization choices might cause future models to drop human-readable reasoning or even hide it. High-profile researchers like Geoffrey Hinton and Ilya Sutskever are backing the call to preserve this transparency while it's still possible.

Why It Matters:

We're in a strange moment where AI models still explain their thinking in a way we can follow. But that might not last. As companies push for faster and smarter systems, those clear step-by-step thoughts could vanish or turn into unreadable shortcuts. If that happens, we lose the one tool that lets us spot problems early. Hidden goals or sketchy decisions could slip by without anyone noticing.

 👀 Click on the image you think is real

QUICK HITS

🧠 Most teens have used AI to flirt and chat — but still prefer human interaction.

🎥 X plans to launch AI text-to-video option, new AI companions.

💻 AI coding tools underperform in field study with experienced developers.

📈 TSMC joins trillion-dollar club on optimism over AI demand.

🛑 Meta says it won’t sign Europe AI agreement, calling it an overreach that will stunt growth.

🏥 AI is helping patients fight insurance company denials.

🦆 DuckDuckGo now lets you hide AI-generated images in search results.

📈 Trending AI Tools

• ✅ Gumloop – Power-level your workflows with AI automations (link)

• 💻 Cursor – IDE-first coding assistant for smooth development (link)

• 🎞 Hailuo MiniMax – Turn images or prompts into cinematic short videos (link)

• 🔍 Qatalog – Unified, natural-language search across your apps (link)

• ✍️ Sudowrite – Fiction-focused AI writing tool to boost creativity (link)