Adobe buys Topaz Labs to boost AI video and image tools

On Thursday, Adobe announced that it is acquiring Topaz Labs, which offers AI models for video and image enhancement, to make the startup a part of its creative business. The acquisition is designed to bolster Adobe’s Creative Cloud—the company’s flagship software suite—and Firefly, its generative AI platform. Adobe, which already offers some of Topaz’s tools in its Creative Cloud suite, will integrate Topaz’s models into Firefly as well as other parts of its image and video editing suites. The transaction will close in the second half of 2026.

Topaz Labs has existed for more than two decades, building tools that help creators enhance videos and images. Last year, the startup won an Emmy for its production technology. In recent years, Topaz has released its own models, including Astra for AI video upscaling and Wonder for image retouching and enhancement. The company has also developed technology to run large video models on consumer-grade GPUs, which are the standard graphics hardware found in home computers. While Adobe will integrate these models into its own applications, Topaz’s offerings will also remain available as stand-alone services through its website.

The acquisition comes as Adobe faces fierce competition in the image and video editing space from rivals like Canva and Blackmagic Design, the owner of DaVinci Resolve. To retain users, Adobe has been incorporating AI capabilities across its product lineup, including creating an AI-centric media editing studio with Firefly. Deepa Subramaniam, VP of product marketing for Creative Cloud at Adobe, noted that creative 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.

Subramaniam stated that “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,” according to an emailed statement.

Why it matters

Adobe is aggressively integrating AI to defend its market share, using acquisitions like Topaz Labs to ensure its creative suite remains the default choice against competitors like Canva and Blackmagic Design. By keeping users within its ecosystem for video editing and enhancements, Adobe aims to prevent them from turning to rival software.