Adobe, the software behemoth, has acquired ‘Rephrase.ai,’ an AI startup based in Bengaluru that specializes in an artificial intelligence-driven video creation platform. The acquisition news was disclosed by Shivam Mangla, one of the cofounders of Rephrase.ai, on his official X (formerly Twitter) handle.
Shivam Mangla expressed his enthusiasm about the acquisition, stating, “Exciting news! https://Rephrase.ai is getting acquired by a pioneering creative tech company, ushering us into the new era of Generative AI. 🚀 #GenAI #TechAcquisition #startups,” on the microblogging platform.
Furthermore, he mentioned, “As we begin this new chapter in a larger org, the possibilities are endless. Excited to see what our teams will create next in the world of GenAI. The future is creative and bright!”
Regarding the fate of Rephrase.ai’s employees, the majority of them will transition to Adobe as part of the acquisition deal. However, specific details about the deal size were not disclosed in the report by the Economic Times. It is anticipated that investors in Rephrase.ai will likely receive a complete cash exit, while the founders will be compensated with a combination of cash and Adobe stock.
Established in 2019 by IIT alumni Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla, Rephrase.ai is a Bengaluru-based AI startup renowned for its text-to-video generation platform. The platform caters to influencers and video creators, enabling them to craft professional video clips. So far, Rephrase.ai has secured funding amounting to $13.9 million.
The significance of the Adobe-Rephrase deal lies in it being Adobe’s maiden venture into the realms of generative AI and video-tooling industries, as reported by the Economic Times. Notably, Rephrase.ai marks the first Indian startup to be acquired by Adobe, a company that has predominantly focused on acquisitions in the US and Europe alongside its domestic market.
In an internal communication to employees, Ashley Still, senior vice president, and general manager of Creative Cloud at Adobe, highlighted that Rephrase.ai’s team will enhance the company’s generative video capabilities. The memo underscored the potential of leveraging Rephrase.ai’s expertise in developing text-to-video generator tools and generative AI video and audio technology to deliver enhanced value to customers expeditiously and expand Adobe’s generative video offerings within its leading creative applications.
Furthermore, Adobe’s spokesperson, in a statement to MoneyControl, emphasized Adobe’s commitment to leveraging both organic and inorganic innovation to propel growth. The company remains dedicated to scouting for fresh talent and cutting-edge innovations to complement its strategy and enhance stakeholder value.
Adobe’s foray into the generative artificial intelligence domain, announced in March this year, aims to integrate generative AI tools into its suite of services and applications. The company provided a glimpse of its generative AI-to-video capabilities at Adobe Max, its annual creativity conference, held last month.
