Happy Thursday, !

Pick a winner in this week’s world-famous news haiku competition™ in today’s poll.

And now for some news you really N2K…

Matt Davis — Need2Know Chedditor

News You Need2Know

• Netflix bets big on Ben Affleck's AI edit startup

• Oil shock sends tremors through world economy

• Goldman executive says private markets clients ‘gl …

• Intel shareholder claims board gave US an equity s …

• Trump sons' drone company seeks Pentagon contracts

• Poll of the day: It’s world-famous-5-7-5™ time

• Poll of the day: You’re ready to vote

  • We asked: “How motivated are you to vote in the 20 …

What’s the stock market up to, eh?*

$SPX ( ▼ 0.47% ) $DJI ( ▼ 0.07% ) $NDX ( ▼ 0.76% )  

Companies mentioned in today’s newsletter

 $NFLX ( ▲ 0.19% )  $AMZN ( ▼ 0.68% )  $DIS ( ▼ 0.13% )  $GS ( ▼ 0.37% )  $JPM ( ▲ 0.34% )  $INTC ( ▲ 1.26% )  

Netflix bets big on Ben Affleck's AI edit startup

Netflix's $NFLX ( ▲ 0.19% ) acquisition of InterPositive, an AI company co-founded by Ben Affleck, could be worth up to $600 million in potentially one of the streaming giant's largest deals ever.

The company — which builds tools to help filmmakers streamline post-production work like fixing continuity issues or enhancing scenes — fits squarely into Netflix's broader AI ambitions. Importantly, InterPositive doesn't generate new content or use footage without permission, a distinction that may help ease industry concerns.

According to Bloomberg, the actual cash payment may be lower than the headline figure, with former owners eligible for performance-based payouts. Netflix hasn't publicly confirmed the terms.

The deal follows Netflix's existing experiments with generative AI, including a building-collapse scene created for the Argentine series "The Eternaut." Competitors are racing to keep pace: Amazon $AMZN ( ▼ 0.68% ) is building internal AI teams for film and TV, while Disney $DIS ( ▼ 0.13% ) has partnered with OpenAI.

Not everyone is celebrating. Workers across the entertainment industry worry about job displacement and whether AI companies are fairly compensating creators whose work trains these systems.

Ben Affleck, meanwhile, starred in a movie called “The Accountant” for a reason.

Oil shock sends tremors through world economy

The war in Iran has delivered what former U.S. diplomat David Goldwyn called "the big one," — the shutdown of the Strait of Hormuz, the world's most critical oil chokepoint. The fallout is reverberating far beyond the Middle East.

In Vietnam, gas stations posted "sold out" signs. In India, gas-fired crematories temporarily closed. Kenyan tea exporters watched shipments destined for Iran rot on docks. Across North America and Europe, farmers reeled from surging fertilizer costs.

"This really is the big one," Goldwyn told the New York Times. "It is the emergency scenario everyone feared."

The economic damage extends well beyond fuel prices. Cargo deliveries are stranded, shipping costs and insurance premiums have skyrocketed, affecting everything from food and medicine to semiconductors and airplane tickets. Saudi Aramco's $ARMCO ( 0.0% ) CEO warned of "catastrophic consequences" for global markets if the conflict drags on.

The crisis also strengthens Russia's hand. Trump eased restrictions on Russian oil exports this week, and higher prices will boost Putin's war machine. European economies, still recovering from their Russian energy dependency, now face another squeeze just as tariff impacts compound their troubles.

Central bankers worldwide face an impossible choice: raise rates to combat inflation or cut them as growth slows? Meanwhile, record debt levels mean more money going to interest payments rather than infrastructure or services.

Yesterday President Trump argued that as the world's largest oil producer, the U.S. financially benefits from the spikes: "The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money":

Quote of the Day

Goldman executive says private markets clients ‘glad’ about Iran war ‘distraction’

A Goldman Sachs $GS ( ▼ 0.37% ) executive told clients this week that some in the private capital industry are relieved the Iran conflict is drawing attention away from mounting concerns about their exposure to software companies.

Kunal Shah, co-chief executive of Goldman Sachs International, made the remarks on a Wednesday client call titled "Strikes in Iran — End of the Beginning . . .?", reports the Financial Times.

According to three people familiar with the discussion, Shah said some "private markets clients" were "just glad there's something to talk about that isn't software exposures and private credit."

Goldman told the Financial Times that Shah "was asked a question about what he was hearing from clients and shared his observations from multiple points of view."

The comments highlight the pressure facing private equity and credit firms this year. Shares in listed players have tumbled amid fears that AI could disrupt the software companies in which they've invested heavily. Blue Owl Capital, a tech-focused lender that recently restricted withdrawals from a retail debt fund, has seen its stock fall nearly 40 percent.

The broader sector is also grappling with concerns about lending standards following last September's fraud-linked bankruptcies of Tricolor Holdings and First Brands Group. JPMorgan $JPM ( ▲ 0.34% ) CEO Jamie Dimon warned at the time that more "cockroaches" could be lurking in credit markets.

Turns out there are cockroaches lurking all over, though, eh Jamie?

Intel shareholder claims board gave US an equity stake to avoid Trump’s social media attacks

A shareholder lawsuit accuses Intel's $INTC ( ▲ 1.26% ) leadership of handing the U.S. government a 10-percent stake in the chipmaker because executives feared personal attacks from President Trump — not because it served shareholders' interests, reports the Financial Times.

The Delaware lawsuit, filed by individual shareholder Richard Paisner, describes the August 2025 transaction as an "unlawful contract that gives the US government $11bn worth of Intel stock for no meaningful consideration in response to extortionary threats by the government."

The case centers on Intel CEO Lip-Bu Tan, who was born in Malaysia. Last August, Trump publicly called on Tan to resign, citing conflicts of interest over his history investing in Chinese companies. Tan rushed to the White House, where Trump walked back his comments. Shortly after, the government stake was announced.

The lawsuit alleges the deal was struck "so that Tan could keep his job," claiming Intel's board prioritized "protecting their personal reputations, being free from attacks by President Trump and his supporters on social media" over shareholder interests.

The government's equity was funded by converting $2.2 billion in Chips Act grants plus $8.9 billion in federal grants that had been awarded but not yet paid.

The suit also targets Intel's legal advisers at Skadden, alleging the firm "simultaneously represented the Department of Commerce as a result of a similar shakedown by the Administration." Skadden was among elite law firms that agreed to provide pro bono work to the Trump administration to avoid federal blacklisting.

Intel's shares have nearly doubled since the deal, pushing its market cap to almost $250 billion. The company, commerce department, and Skadden all declined comment

Song of the Day: Ringo Starr, “It’s Been Too Long”

This is the lead single from Ringo Starr’s forthcoming 22nd solo album, “Not Dead Yet” “Long Long Road,” (and wow, hasn’t it been) scheduled for release on April 24. Produced and co-written by T Bone Burnett and Daniel Tashian, the track continues the country-leaning trajectory established by Starr’s 2025 chart-topping album, “Look Up.” And best of luck to him. There’s only two of you left now, Ringo, you know!

Free yourself from advertising forever!

Trump sons' drone company seeks Pentagon contracts

The AP reports that a drone manufacturer partly owned by Donald Trump Jr. and Eric Trump is among dozens of companies competing for Pentagon contracts — part of a $1.1 billion program to build U.S. armed drone manufacturing now that imports from China are banned.

Powerus, founded by Army Special Operations veterans about a year ago, is flush with cash and rapidly acquiring rivals. It has purchased three competitors in six months, raised $60 million from investors, and plans to go public through a reverse merger with Aureus Greenway Holdings — a Florida company partly owned by the Trump brothers that holds golf courses and trades on Nasdaq.

"It's corruption," said Kathleen Clark, a government ethics expert at Washington University School of Law. "Government decision makers will feel pressure to use contract awards to enrich the president's family."

Powerus co-founder Brett Velicovich dismissed concerns about conflicts of interest. "There's no conflict there. Whatever they're doing, is what they're doing," he said of the Trump brothers. "Our focus at the company has nothing to do with politics."

Eric Trump said in a statement: "I am incredibly proud to invest in companies I believe in. Drones are clearly the wave of the future."

The Trump family's expansion into federal contracting has drawn less scrutiny than their foreign real estate deals and cryptocurrency ventures. Don Jr. joined venture capital fund 1789 Capital after the election; it has since invested in 25 companies in one year —most appearing to seek federal contracts or taxpayer funds.

Asked why Powerus chose a Trump-affiliated company for its merger instead of hundreds of other options, Velicovich said he wasn't a finance specialist and didn't know.

Should you check your 401(k) today?

👎️ 

Absolutely not.

Poll of the day: It’s world-famous-5-7-5™ time

Poll of the day: You’re ready to vote

We asked: “How motivated are you to vote in the 2026 midterms?”

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ It's just a midterm. I'm not, like, chomping at the bit, or anything. (73)
🟨🟨⬜️⬜️⬜️⬜️ I'm motivated. I have strong feelings I'd like to express at the ballot box. (205)
🟩🟩🟩🟩🟩🟩 It would be impossible for me to be more motivated to vote in the 2026 midterms. I'm so motivated I make a drill instructor look like a slacker. Let me vote, gosh darn it! Let me vote already! (491)

769 Votes via @beehiiv polls

Need2Know is covered by Cheddar’s Terms of Service

P.S. So, you remember the cheese puns that used to open this newsletter? Suffice to say, they were divisive. Now, thanks to a thing called “dynamic content options,” I can offer you the option to see cheese puns again, if you’re one of the thousands who got in touch bemoaning their departure six months ago. All you need to do is answer “true” on this survey, and submit it. If you never want to see cheese puns in this newsletter again, don’t click that link, don’t fill out the survey, don’t submit it. Just keep reading and pretend this conversation never happened. Mmmkay? Thank you.