In a strategic move to strengthen its position in the artificial intelligence (AI) and video creation space, Adobe has reportedly acquired Bengaluru-based startup Rephrase.ai. The acquisition, detailed in a report by Economic Times, reflects Adobe’s foray into the generative AI and video-tooling arena.
Rephrase.ai, founded by IIT Bombay graduates Ashray Malhotra, Nisheeth Lahoti, and IIT Roorkee alumnus Shivam Mangla, operates an AI-powered video creation platform. The Bengaluru-based company’s expertise lies in simplifying text-to-video generation, allowing users to craft professional-looking videos seamlessly.
The transaction involves integrating Rephrase’s technology stack and generative AI video capabilities into Adobe’s Creative Cloud, its in-house video-editing platform. This strategic move is anticipated to enhance Adobe’s ability to provide AI-powered video content tools, catering to the evolving needs of its customer base.
As part of the deal, a significant portion of Rephrase’s team is set to join Adobe, signaling a collaboration of talents in the generative AI and video technology domain. While the exact deal size remains undisclosed, the report suggests that Rephrase’s investors are likely to experience a complete cash exit, with founders receiving compensation in both cash and Adobe stock.
This acquisition marks a milestone for Adobe, representing its first-ever venture into the generative AI and video-tooling space. Notably, Rephrase.ai becomes the inaugural Indian startup to join Adobe through an acquisition, breaking away from Adobe’s traditional trend of striking deals primarily in the US and Europe.
This strategic move follows Adobe’s earlier announcement in March, where it revealed its entry into the generative artificial intelligence (AGI) space with the beta launch of the Firefly model.
