Adobe has invested in Synthesia, a British AI startup, betting on the potential of AI to transform video production.
Synthesia stated that Adobe’s venture capital arm invested an undisclosed amount into the startup as part of a “strategic” partnership, without providing further details on the financial and commercial terms, according to CNBC.
Synthesia, which claims to serve over 70% of the Fortune 100, offers a platform that allows businesses to create videos featuring lifelike AI-generated avatars.
Users can create their own AI avatars either at Synthesia’s production studios or on personal devices.
Adobe, valued at around $150 billion, is renowned for its Photoshop image editing tool. The company also develops Premiere Pro, a popular video editing platform used by professionals in broadcast media, advertising, and various other industries.
“We’re building the world’s leading AI video platform for enterprise, and Adobe’s investment validates that direction,” Synthesia CEO Victor Riparbelli told CNBC. “We share a vision: democratizing high-quality content creation and making enterprise communication faster and more effective.”
Along with Adobe’s investment, Synthesia also revealed that it has reached $100 million in annual recurring revenue, a key metric indicating the revenue generated from subscription renewals each year.
“We’ve grown approximately 100% year-over-year, driven by strong customer expansion and best-in-class unit economics,” Riparbelli said. “Surpassing $100 million in ARR puts us in a very small group of AI-native companies with real commercial traction.”
Despite its success, the startup remains unprofitable and has stated that it is not focused on achieving profitability in the near future.
This isn’t Adobe’s first significant investment in a venture-backed startup. The company had previously pursued a $20 billion acquisition of the design platform Figma, but called it off after regulatory concerns from the European Union and U.K.
Adobe is also an active venture investor, backing companies such as Captions and VidMob.
