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Adobe Acquires AI Video and Image Enhancement Startup Topaz Labs

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Adobe has announced the acquisition of Topaz Labs, a veteran AI-powered video and image enhancement company, in a deal expected to close in the second half of 2026. The purchase will bring Topaz’s proprietary AI models directly into Adobe’s creative software ecosystem.

Founded over two decades ago, Topaz Labs received an Emmy Award in 2025 for its production technology and has developed two flagship AI models: Astra, focused on video upscaling, and Wonder, designed for image retouching and enhancement. The company has also built technology enabling large AI video models to run on consumer-grade GPUs, reducing the hardware barrier for professional-quality AI processing.

Adobe plans to integrate Topaz’s models into its Firefly AI application and broader image and video editing suites, while also making Topaz tools available as standalone services. Deepa Subramaniam, VP of product marketing for Creative Cloud, said Topaz’s strength lay in optimising large, complex AI models to run directly on device, enabling faster and more cost-effective experiences for creative professionals across photography, video, and design.

Some Topaz tools were already available within Adobe’s Creative Cloud suite prior to the acquisition.

The deal deepens Adobe’s AI capabilities as it faces intensifying competition from Canva and Blackmagic Design, and reflects the company’s strategy of consolidating AI-powered creative tools within its own ecosystem to reduce the need for users to seek third-party software.

James Dargan
About the author
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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