Adobe acquires Rephrase.ai, an Indian generative AI startup: Report

American software giant Adobe has acquired Rephrase.ai, a Bengaluru-based AI-powered video creation platform. With this move, Adobe focuses to deliver AI-driven video content to its customer base. As reported by ET, senior executives of Adobe informed the employees about the acquisition through an internal memo.

The majority of Rephrase's team is set to join Adobe as part of the deal, marking Adobe's first acquisition in the generative AI and video-tooling space. Rephrase becomes the first Indian startup to be acquired by Adobe.

Ashley Still, senior vice president and general manager, Creative Cloud, Adobe, expressed excitement about Rephrase's expertise in generative AI video and audio technology.

He commented, “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.” 

Rephrase's investors are poised for a complete cash exit through this acquisition, with founders receiving compensation in both cash and Adobe stock. This move reflects the growing competition in generative AI among big tech companies. Adobe's spokesperson highlighted their focus on leveraging new talent and technology to amplify growth and create enhanced value for stakeholders.

“Adobe has a strong track record of accelerating growth through both organic and inorganic innovation. We are always on the lookout for new talent and technology that supports our strategy and creates more value for our stakeholders,” said an Adobe spokesperson, in response to ET.

Recently, Microsoft Azure unveiled text-to-speech capabilities for digital avatars via its Azure AI speech service, intensifying competition for domestic players like Rephrase.