Adobe Acquires AI Image and Video Enhancement Startup Topaz Labs
News Desk
27 June 2026, 10:32
Adobe has acquired Topaz Labs, the company behind a range of AI-powered image and video enhancement tools, as it looks to strengthen its creative software portfolio and expand the capabilities of its Firefly AI platform.
Announcing the deal on 25th June, Adobe said Topaz Labs will become part of its creative business. The financial terms of the acquisition were not disclosed. The transaction is expected to close in the second half of 2026.
Founded more than two decades ago, Topaz Labs has built a reputation for developing software that improves image and video quality. In recent years, the company expanded into generative AI, launching models such as Astra for AI-powered video upscaling and Wonder for image enhancement and retouching. It has also developed technology that enables large AI video models to run efficiently on consumer-grade graphics cards.
Adobe said it plans to integrate Topaz Labs' AI models into Firefly, its AI-powered creative platform, as well as other applications across Creative Cloud. At the same time, Topaz Labs' products will continue to be offered as standalone services through the company's website.
Strengthening Adobe's AI Strategy
According to Adobe, the acquisition will enhance tools used by photographers, designers, video editors, and enterprise creative teams. The company said professionals working with a mix of live-action footage and AI-generated content will be able to use Topaz Labs' technology for tasks such as sharpening details, reducing image noise, and restoring archival video.
Deepa Subramaniam, Vice President of Product Marketing for Creative Cloud at Adobe, said Topaz Labs brings extensive expertise in optimizing large AI models to run directly on users' devices. According to the company, this will help Adobe deliver faster performance, reduce cloud computing costs, and make advanced AI features more accessible to creative professionals.
The acquisition also reflects the intensifying competition in creative software. Adobe has been expanding AI capabilities across its product lineup while facing growing pressure from rivals such as Canva and Blackmagic Design, whose DaVinci Resolve platform has gained popularity among professional video editors.
By bringing Topaz Labs' technology into its ecosystem, Adobe is strengthening its in-house AI capabilities while giving creators more advanced editing tools without requiring them to rely on third-party applications.
