Adobe has acquired RePhrase.ai, an Indian generative AI firm.

The AI-powered video production company Rephrase.ai, located in Bengaluru, has been bought by the multinational software giant Adobe. Adobe's goal with this initiative is to provide its clientele with AI-driven video content. According to ET, an internal message from Adobe's senior executives told the staff about the transaction.

As part of the agreement, the bulk of Rephrase's staff will join Adobe, making this the company's first purchase in the generative AI and video-tooling industries. Adobe acquires Rephrase, the first company from India.

Senior vice president and general manager of Adobe's Creative Cloud, Ashley Still, expressed enthusiasm about Rephrase's proficiency with generative AI in audio and video technologies.

He went on to say, "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." 

Through this transaction, Re's investors will have a complete cash exit, with founders receiving compensation in both cash and Adobe shares. This approach highlights the increased competitiveness among large tech companies in generative AI. Adobe's spokesman emphasized the company's commitment on harnessing new talent and technology to accelerate growth and increase value for stakeholders.

Adobe has a proven track record of driving growth via organic and inorganic innovation. In response to ET, an Adobe spokeswoman stated, "We are always on the lookout for new talent and technology that supports our strategy and creates more value for our stakeholders."

Microsoft Azure recently announced text-to-voice capabilities for digital avatars via its Azure AI speech service, increasing competition for domestic competitors like Rephrase.