Software giant Adobe has acquired Bengaluru-based AI startup ‘Rephrase.ai’, an artificial intelligence-driven video creation platform. The information was shared by Rephrase.ai’s cofounder Shivam Mangla on his official X (formerly Twitter) handle.
“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,” Shivam Mangla wrote on the microblogging site.
He added, “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!”
What about Rephrase.ai’s employees now?
Now, a majority of Rephrase’s employees will join Adobe as a part of the deal. However, the report published by the Economic Times did not provide much details on the final deal size. It added that investors in Rephrase.ai will probably receive a full cash exit, and the founders will get paid in cash and Adobe stock.
Founded in 2019 by IIT alumni Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla, Rephrase.ai is a Bengaluru-based AI startup that provides a text-to-video generation facility. It helps influencers and video creators to create professional video clips. To date, it has raised $13.9 million.
Why Adobe-Rephrase deal is important?
Adobe’s acquisition of Rephrase.ai is noteworthy because it is the US-based software giant’s first-ever agreement in the generative AI and video-tooling industries, Economic Times reported.
Notably, Rephrase became the first Indian startup to be acquired by Adobe, a company that has primarily closed deals in the US and Europe in addition to its home market.
Adobe’s internal memo to employees after Rephrase.ai’s deal
In an internal memo to employees, Ashley Still, senior vice president and general manager of Creative Cloud stated that Rephrase.ai’s team will extend the company’s generative video capabilities.
“With the help of the Rephrase.ai team’s experience-building text-to-video generator tools and generative AI video and audio technology, we will be able to deliver more value to our customers more quickly while also expanding our generative video capabilities within our market-leading creative applications,” the memo read as quoted by ET.
What did Adobe’s spokesperson say?
Speaking to MoneyControl, Adobe’s spokesperson said that the software major has a proven track record of using both inorganic and organic innovation to accelerate growth. “We are constantly searching for fresh talent and cutting-edge innovations to complement our approach and increase value for our stakeholders.”
Adobe announced its entry into the generative artificial intelligence space in March this year. The goal of the move is reported to integrate generative AI tools into its lineup of services and apps. The company gave a sneak peek at its generative AI-to-video capabilities last month at Adobe Max, its yearly creativity conference.
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Updated: 23 Nov 2023, 09:02 AM IST