American software behemoth Adobe has finished acquiring Rephrase.ai, a Bengaluru-based startup well-known for its artificial intelligence-powered video production tool. Adobe’s goal with this move is to provide its clientele with AI-driven video content. This is not only Adobe’s first acquisition of a generative AI startup but also its first within the Indian startup ecosystem. Adobe’s in-house video editing platform, Creative Cloud, has incorporated Rephrase’s technology stack and AI-powered video capabilities in an effort to improve Adobe’s product offerings.
Exciting news! https://t.co/1vjINmfQE6 is getting acquired by a pioneering creative tech company, ushering us into the new era of Generative AI. 🚀 #GenAI #TechAcquisition #startups
— Shivam Mangla (@_shivammangla) November 22, 2023
Rephrase.ai is a platform that simplifies complex text-to-video conversion processes and empowers users to create videos of professional quality. It is expected that the acquisition will greatly increase Adobe’s ability to provide its customers with artificial intelligence-powered video content tools. With its state-of-the-art generative AI technology, the platform creates highly customized, polished videos for companies all over the world. Furthermore, it facilitates marketing teams and aids influencers and video producers in creating digital personas. They have already created award-winning campaigns in collaboration with a large number of companies and organizations.
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The majority of Rephrase’s staff will be integrated into Adobe as part of the acquisition. Regarding the ultimate deal size, however, not much information was given. Going forward, the software company will also work closely with the founders of Rephrase.ai. As of right now, Rephrase employs about 45 people. Its investors are reportedly expected to receive a full cash exit, and the founders will be compensated with cash and Adobe stock.
The reason Adobe’s acquisition of Rephrase.ai is significant is that it represents the US software giant’s first-ever contract in the generative AI and video tooling sectors. It reflects the increasing rivalry between major tech companies in the field of generative AI. Rephrase made history by becoming the first Indian startup to be acquired by Adobe, a business that has mostly closed deals outside of its native market, in the U.S. and Europe. It is anticipated that this deal will help Adobe expand its capacity to offer its clients artificial intelligence-powered video content tools more quickly.
Ashray Malhotra, Nisheeth Lahoti from IIT Bombay, and Shivam Mangla, who graduated from IIT Roorkee, founded the company. To date, it has raised $13.9 million. Techstars, Silver Lake, Lightspeed India, and 8VC are some of the startup’s other backers of the startup.
Ashley Still, senior vice president and general manager, of Creative Cloud, said
The Rephrase.ai team’s expertise in generative AI video and audio technology and experience-building text-to-video generator tools will extend our generative video capabilities — and enable us to deliver more value to our customers faster – all within our industry-leading creative applications.
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