Adobe makes stride into Generative AI with acquisition of Rephrase.ai

Adobe has successfully acquired Rephrase.ai, an Artificial Intelligence (AI) start-up based in Bengaluru, known for its AI-driven video creation platform. The co-founder of Rephrase.ai, Shivam Mangla, announced the acquisition on his official X (formerly Twitter) handle, expressing excitement about entering the new era of Generative AI.

Rephrase.ai’s employees will now become part of Adobe as a result of the deal. As per news sources, the investors in AI start-up are likely to receive a full cash exit, with the founders receiving payment in both cash and Adobe stock.

Founded in 2019 by IIT alumni Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla, company specialises in text-to-video generation, catering to influencers and video creators seeking professional video clips. The start-up has raised $13.9 million in funding to date.

This acquisition is significant for Adobe as it marks the company’s first venture into the generative AI and video-tooling industries. Rephrase.ai holds the distinction of being the first Indian start-up acquired by Adobe, a company that has historically closed deals primarily in the US and Europe.

According to an internal memo from Ashley Still, senior vice-president and general manager of Creative Cloud at Adobe, Rephrase.ai’s team will contribute to extending the company’s generative video capabilities. The memo emphasises the potential for delivering increased value to customers by leveraging the start-up’s expertise in text-to-video generator tools and generative AI video and audio technology.