Adobe has reportedly acquired Bengaluru-based Rephrase.ai.
According to a report in TheIndianSubcontinent, Rephrase.ai runs an artificial intelligence (AI)-powered video creation platform.
The US software major reportedly looks to integrate Rephrases tech stack and generative AIvideo capabilities with its in-house video-editing platform, Creative Cloud, and bolster its offerings.The transaction is expected to help Adobe accelerate its ability to provideAI-powered video content tools to its customers.Rephrase.ai is a Bengaluru-based startup that provides a text-to-video generation platform that is claimed to remove complexities and help users create professional looking videos.
Rephrase.ai also helps influencers and video creators build digital avatars and enables marketing teams.
The company was founded by IIT Bombay graduates, Ashray Malhotra, Nisheeth Lahoti and IIT Roorkee alumni Shivam Mangla.
It has raised $13.9 million till date.
In September, last year, the company raised $10.6 million in a round led by US media company Red Ventures.
Other backers of the startup include Lightspeed India, Silver Lake, 8VC, Techstars.What about Rephrases employeesAs part of the deal, a majority of Rephrases team members will join Adobe.
The report did not give details on the final deal size.
The report adds that with the acquisition, Rephrases investors will likely be given a complete cash exit, with the founders being paid in cash and Adobe stock.Why is the deal importantAdobe's Rephrase.ai buy is significant as it marks the first-ever deal for the US-based software major in the generative AI and video-tooling space.
It also makes Rephrase the first Indian startup to be acquired by Adobe, which has largely struck such deals in its home market, the US, and in Europe.Adobes internal memo to employees on Rephrase.ai's buyThe Rephrase.ai teams expertise in generative AI video and audio technology and experience-building text-to-video generator tools will extend our generative video capabilities and enable us to deliver more value to our customers faster all within our industry-leading creative applications, Ashley Still, senior vice president and general manager, Creative Cloud, wrote in an internal memo to employees.In March, Adobe announced its entry into the generative artificial intelligence (AGI) space with a new model, Firefly, in beta launch mode.
The move is said to be focused on bringing generative AI tools to its suite of apps and services.
Last month, at Adobe Max, its annual creativity conference, the company previewed its generative AI-to-video capabilities.