Adobe acquires image and video enhancement tool maker Topaz Labs

Adobe is acquiring Topaz Labs, a company that makes AI tools for enhancing and upscaling images and videos. Topaz Labs has developed AI models and technology that allow complex video processing to run on consumer-grade computers, capabilities Adobe plans to integrate into its Firefly AI app and broader creative software suite. This acquisition matters because Adobe competes with other creative software makers and aims to keep users within its ecosystem by offering advanced AI features directly in its products. The deal reflects a broader trend of Adobe adding AI capabilities across its applications to maintain its position in the image and video editing market.