Adobe Acquires Topaz Labs, Enhancing AI Capabilities for Creative Cloud

Adobe on Thursday said it is acquiring Topaz Labs, which offers AI models for video and image enhancement, and that it will make it a part of its creative business. Topaz Labs, which won an Emmy last year for its production tech, has existed for more than two decades, making tools for enhancing videos and images. In recent years, the company has released its own models: Astra for AI video upscaling and Wonder for image retouching and enhancement.

The startup has also worked on a technology that makes it easier to run large video models on consumer-grade GPUs. Adobe, which already offers some of Topaz’s tools in its Creative Cloud suite, said it will integrate Topaz’s models into its Firefly AI app as well as other parts of its image and video editing suites. Adobe said Topaz’s offerings will be available as stand-alone services through its website.

Deepa Subramaniam, VP of product marketing for Creative Cloud at Adobe, said professionals who want to combine real-life footage with AI clips can use Topaz’s products for tasks like sharpening details, reducing noise, or restoring archival footage. “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,” Subramaniam said in an emailed statement.

Adobe has been in fierce competition with Canva and DaVinci Resolve-owner Blackmagic Design in the image and video editing space. Adobe has been stuffing AI into all of its apps and has also created an AI-centric media editing studio with Firefly. By acquiring startups like Topaz Labs, Adobe wants to keep its users from turning to other software for video editing and enhancements, encouraging them to stick to its ecosystem.

Adobe said the transaction will close in the second half of 2026. The acquisition of Topaz Labs underscores Adobe's commitment to integrating AI capabilities into its Creative Cloud suite, bolstering its position in the competitive image and video editing market. This move is likely to benefit professionals who rely on advanced AI models for enhancing videos and images, as they will have access to more sophisticated tools within Adobe's ecosystem.

For developers and businesses, this acquisition highlights the growing importance of AI in creative applications and the need to stay competitive in a rapidly evolving market. As Adobe continues to expand its AI offerings, it raises questions about the future of smaller, specialized AI startups and how they will adapt to being part of larger tech ecosystems. Ultimately, this acquisition is a strategic play by Adobe to maintain its market share and provide more value to its users through cutting-edge AI technology.