Software behemoth Adobe has purchased Bengaluru-based AI startup Rephrase.ai, which is an AI-powered platform for creating videos. Co-founder of Rephrase.ai Shivam Mangla posted the details on his official X (formerly Twitter) account.
“Exciting announcement! “A forward-thinking creative tech company is acquiring https://Rephrase.ai, leading us into the new era of Generative AI. 🚀 #GenAI #TechAcquisition #startups,” Shivam Mangla said on the microblogging platform.
“The possibilities are endless as we begin this new chapter in a larger organization,” he continued. I’m eager to see what our teams’ upcoming GenAI creations will produce. Bright and inventive is the future!”
What about the staff at Rephrase.ai now?
As a result of the agreement, the vast majority of Rephrase’s staff will now join Adobe. On the other hand, the Economic Times report was vague on the ultimate deal value. It further stated that Rephrase.ai investors are likely to receive a full cash exit, and the founders will be compensated with cash and Adobe shares.
A Bengaluru-based AI firm called Rephrase.ai was founded in 2019 by three IIT grads, Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla. The company offers a text-to-video production service. Influencers and video producers can use it to make polished video content. It has raised $13.9 million so far.
Why does the Adobe-Rephrase agreement matter?
According to Economic Times, Adobe’s acquisition of Rephrase.ai is significant since it represents the US software giant’s first-ever contract in the generative AI and video-tooling sectors.
Rephrase made history by becoming the first Indian firm to be purchased by Adobe, a business that has mostly concluded acquisitions outside of its native market in the US and Europe.
Adobe’s internal memo to staff following the acquisition of Rephrase.ai
Ashley Still, senior vice president and general manager of Creative Cloud, announced in an internal memo to staff members that the Rephrase.ai team will expand the company’s generative video capabilities.
The memo, cited by ET, stated: “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, with the help of the Rephrase.ai team’s experience-building text-to-video generator tools and generative AI video and audio technology.”
What did a representative for Adobe say?
A representative for Adobe told MoneyControl that the software giant has a track record of utilizing both organic and inorganic innovation to boost growth. “We are always on the lookout for new ideas and innovative talent to enhance our strategy and add value for our stakeholders.”
In March of this year, Adobe declared its intention to enter the generative artificial intelligence market. Reportedly, the move aims to incorporate generative AI techniques into its service and app portfolio. At Adobe Max, the firm’s annual creativity conference, last month, the company provided a preview of its generative AI-to-video capabilities.
