Business

Adobe to Acquire Topaz Labs to Bolster Image and Video AI Capabilities

Adobe announced it will acquire Topaz Labs, a long-standing developer of AI-driven image and video enhancement tools, and fold the company into its creative business.

Adobe to Acquire Topaz Labs to Bolster Image and Video AI Capabilities

Adobe said on Thursday it will acquire Topaz Labs, a developer of AI models for video and image enhancement, and will make the company part of its creative business.

About Topaz Labs

Topaz Labs has operated for more than two decades, producing tools for enhancing videos and images. The company won an Emmy last year for its production technology. In recent years Topaz has released its own AI models, including Astra for AI video upscaling and Wonder for image retouching and enhancement. The startup has also worked on technology aimed at making it easier to run large video models on consumer-grade GPUs.

How Adobe will use Topaz’s technology

Adobe said it will integrate Topaz’s models into its Firefly AI app as well as other parts of its image and video editing suites. The company also indicated that Topaz’s offerings will remain available as stand-alone services through Topaz’s website. Deepa Subramaniam, Vice President of Product Marketing for Creative Cloud at Adobe, said by email: “Topaz Labs brings deep expertise in optimizing large, complex AI models to run directly on device, a capability that will allow Adobe to deliver faster, more responsive experiences for customers and make advanced AI more accessible and cost-effective for creatives. In addition, Topaz Labs is trusted by professionals of all creative crafts – from designers and video professionals to photographers and enterprise creative teams.”

Significance

The acquisition fits Adobe’s strategy to stay competitive in the image and video editing market, where rivals include Canva and Blackmagic Design, owner of DaVinci Resolve. Adobe has been embedding AI across its apps and built an AI-focused media editing studio with Firefly. By bringing startups like Topaz Labs into its fold, Adobe aims to reduce the incentive for users to switch to other software for video editing and enhancement and to keep them within its ecosystem.

Timeline

Adobe said the transaction is expected to close in the second half of 2026.