Netflix has revealed its first use of generative artificial intelligence in an original production, marking a major shift in its approach to content creation.
The technology was employed in The Eternauts, a new Argentine sci-fi series, to craft a key visual effects sequence depicting a building collapse in Buenos Aires.
Co-CEO Ted Sarandos confirmed the milestone, stating that the AI-generated scene was completed “10 times faster” than traditional VFX methods would have allowed. “This was the first generative AI final footage to appear on screen in a Netflix original,” he said. “The creators were thrilled with the result.”
The use of AI reportedly made the complex scene feasible within the show’s budget constraints. Generative AI, which creates images and videos from text prompts, has stirred controversy in Hollywood, with critics arguing it risks displacing artists and repurposing their work without consent. These concerns fueled the 2023 SAG-AFTRA strikes, where actors and writers demanded safeguards against unchecked AI adoption.
While some view Netflix’s move as inevitable, others remain wary. Davier Yoon, co-founder of Singapore-based animation studio CraveFX, acknowledged AI’s potential to democratize high-end visuals: “AI definitely opens the gate to allow smaller studios to achieve big-budget-looking visuals. Ultimately, it is the artist who decides what ends up in the final image—not the AI.”
However, skepticism persists. In 2024, filmmaker Tyler Perry halted an $800 million studio expansion in Atlanta, citing fears that AI tools like OpenAI’s Sora—which generates video from text—could eliminate creative jobs.
Sarandos’ announcement coincided with Netflix’s robust Q2 2025 earnings, which showed a 16% year-on-year revenue jump to $11 billion, with profits surging from $2.1 billion to $3.1 billion. The hit series Squid Game Season 3 contributed significantly, amassing 122 million views globally.