Perplexity Acquires Visual Electric to Strengthen AI Agent Experiences

Perplexity has acquired Visual Electric, the Sequoia-backed AI design startup founded in 2022 by Colin Dunn, Adam Menges, and Zach Stiggelbout. Visual Electric, which had raised $2.5 million from investors including Sequoia, BoxGroup, and Designer Fund, built an AI-powered platform for designers to create and edit images and videos on an infinite canvas.

As part of the acquisition, the Visual Electric team will join Perplexity’s newly formed Agent Experiences group, focused on expanding multimodal AI capabilities. The Visual Electric product will shut down within 90 days, with data export and prorated refunds available for users. While deal terms were not disclosed, the move underscores Perplexity’s commitment to advancing AI-driven creative and interactive tools.

James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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