Adobe, a prominent software company, has made its first generative AI acquisition in India by purchasing Rephrase.ai, an AI-driven video creation startup based in Bengaluru.
The American software giant aims to merge Rephrase's technology stack and generative AI video capabilities into its native video-editing platform, Creative Cloud, thereby enhancing and expanding its array of services, as per a report by the Economic Times.
The acquisition is set to bolster Adobe's capability to swiftly integrate AI-driven video content tools across its software suite. This move comes at a time when corporations have increasingly started searching for AI-powered tools/services that might complement or assist in day-to-day work processes.
Headquartered in Bengaluru, Rephrase.ai was established in 2019 by Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla, who are IIT alumni It is an artificial intelligence startup offering a text-to-video generation service. The platform assists influencers and video creators in producing high-quality video clips. So far, Rephrase.ai has secured funding amounting to $13.9 million.
As per the agreement, the majority of Rephrase.ai's team is expected to join Adobe, although specific details regarding the final deal size were not disclosed in the report. The acquisition is poised to involve a complete cash payout for Rephrase's investors, while the founders are anticipated to receive a combination of cash and Adobe stock.
“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," Ashley Still, Creative Cloud's Senior Vice President, said in an internal memo to employees.