Adobe Acquires Text-to-Video AI Platform Rephrase: What It Means for the Future of Content Creation

As the five-day power struggle at OpenAI concludes with Sam Altman's reinstatement, Adobe is set to enhance its generative AI capabilities. According to the Economic Times, the company has circulated an internal memo announcing its acquisition of Rephrase, a California-based text-to-video firm.

Although the financial details of the deal are undisclosed, this acquisition aims to strengthen Adobe's Creative Cloud suite, which has seen incremental generative AI enhancements over the past year. Rephrase’s technology will enable users to create professional-grade videos using just text input.

Rephrase CEO Ashray Malhotra announced the acquisition on LinkedIn, referring to Adobe only as a “leading tech giant.” He stated he was not authorized to disclose further details at this time.

What Does Rephrase Offer?

Founded in 2019 by Malhotra, Nisheeth Lahoti, and Shivam Mangla, Rephrase provides a platform called Rephrase Studio, where users can swiftly create videos with digital avatars. Users select a video template, choose their desired avatar and voice, and input their content.

The rendering process automatically synchronizes the script with the avatar, while customization options allow users to resize avatars, adjust backgrounds, space out words, or add custom audio. Over the past four years, Rephrase has attracted over 50,000 customers and raised nearly $14 million from investors like Red Ventures and Lightspeed India.

Rephrase’s main selling point is its ability to help businesses and influencers produce personalized videos featuring custom avatars, including brand ambassadors. Following the acquisition, Adobe will integrate these capabilities and a significant portion of the Rephrase team into its portfolio to enhance its offerings for generative AI videos.

Ashley Still, Adobe's Senior Vice President and General Manager for Creative Cloud, emphasized in the internal memo that Rephrase’s expertise in generative AI video technology will accelerate Adobe's ability to deliver more value to customers through its creative applications.

When approached by the media, an Adobe spokesperson declined to comment on how Rephrase's tools would integrate with existing products but highlighted Adobe's commitment to innovation.

Adobe’s Growing Focus on AI

In recent months, Adobe has intensified its investment in generative AI with a series of product updates. The launch of Firefly, an AI engine for image generation, allows users to modify images in Photoshop simply by describing their desired changes.

At the recent Max conference, Adobe showcased generative AI-powered video features, including the ability to upscale videos and modify textures and objects using text prompts. While it remains unclear when these features will be implemented, Rephrase’s avatar technology is a strong candidate for future integration.

Malhotra expressed enthusiasm for the future of generative AI: “These are early days for Generative AI, and we are excited to announce the launch of our new project,” he stated.

In terms of audio and video production, Adobe Creative Cloud offers a range of tools including Premiere Pro, After Effects, Audition, Character Animator, Animate, and Media Encoder. This platform is widely used by professionals and amateurs to create, edit, and share digital content, contributing to viral trends and online communities.