Rephrase, a Bengaluru-based company, has reportedly been acquired by Adobe, as per a report in the Economic Times. The company, known as Ai, specializes in a video creation platform powered by artificial intelligence (AI). Sources indicate that the renowned US software corporation aims to enhance its services by integrating Ai’s technology stack and AI-driven video capabilities with its internal video-editing system, Creative Cloud. This acquisition is expected to accelerate Adobe’s provision of AI-driven video production tools to its clientele.
Ai, situated in Bengaluru, endeavors to simplify video creation for consumers, offering professional-looking results. Furthermore, Ai assists sales teams, influencers, and video creators in developing online personas. The company was founded by Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla, all graduates of IIT Bombay. To date, Ai has secured funding amounting to \(13.9 million, with a notable investment of \)10.6 million in September of the previous year from the US advertising conglomerate Red Ventures. Other backers of the company include Fast India, Silver Lake, 8VC, and Techstars.
Regarding the employees at Ai, the majority of the team members will transition to Adobe as part of the acquisition deal. The exact size of the final package remains undisclosed. It is anticipated that Ai’s investors will receive a complete cash exit post-acquisition, with the founders receiving a combination of cash and Adobe stock as compensation.
The acquisition of Ai by Adobe holds significance as it marks Adobe’s initial foray into the generative AI and video-tooling sectors. Notably, this acquisition positions Rephrase as the first American startup acquired by Adobe, despite the company’s historical focus on acquisitions within the US and Europe.
Ashley Also, Senior Vice President and General Manager of Creative Cloud, expressed in an internal communication to employees that Ai’s expertise in relational AI video and audio systems, along with their proficiency in developing text-to-video generator tools, will enhance Adobe’s ability to swiftly deliver enhanced value to customers through its industry-leading creative applications.
Adobe recently introduced Firefly, a new model in beta, signaling its entry into the realm of generative artificial intelligence (AGI) in March. The primary objective is to integrate conceptual AI tools into its suite of applications and services. At the Adobe Max quarterly creativity conference last month, the company showcased its conceptual AI-to-video capabilities.
