Adobe takes over Bengaluru based AI startup Rephrase.ai

Software giant Adobe enters into Indian AI space by acquiring Bengaluru based Rephrase.ai. Rephrase.ai is an artificial intelligence-driven video creation platform. The company's cofounder Shivam Mangla posted on X that the acquistion has taken the company into a new era of Generative AI.

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

Adobe-Rephrase.ai deal

As per the deal, employees of Rephrase.ai will be joining Adobe and the investors will receive a full cash exit. The founders will get paid in cash and Adobe stock. This deal is the first ever agreement signed by Adobe in the generative AI and video-tooling industries. Rephrase.ai is also the first Indian startup to be acquired by Adobe.

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As per a memo seen by Economic Times, Ashley Still, senior vice president and general manager of Adobe's Creative Cloud stated that Rephrase.ai's team will extend the company's generative video capabilities.

“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," the memo read

Adobe's spokesperson told Moneycontrol that he software major has a proven track record of using both inorganic and organic innovation to accelerate growth. “We are constantly searching for fresh talent and cutting-edge innovations to complement our approach and increase value for our stakeholders."