Adobe makes a strategic bet on AI-generated video with an investment in Synthesia

Adobe is diving deeper into artificial intelligence with a new investment in Synthesia, a British AI startup that lets users create videos with lifelike avatars and voiceovers in 140+ languages. CNBC officially confirmed that Adobe's venture capital arm gave Synthesia an undisclosed amount of capital as part of a "strategic partnership." While neither company shared detailed terms of the deal, the move signals Adobe's growing interest in AI tools that can enhance and disrupt traditional video workflows. Synthesia's platform enables users to create videos using text prompts and AI-generated avatars — including customized versions of real people. Users can choose from over 230 pre-made avatars on Synthesia's site. They can also create their own in a Synthesia studio or remotely on personal devices. Synthesia aims to make video production quicker and easier using text prompts and AI-generated avatars. The company claims that over 70% of Fortune 100 companies use its tools. "We're building the world's leading AI video platform for enterprise, and Adobe's investment validates that direction," said Victor Riparbelli, Synthesia's CEO. "We share a vision: democratizing high-quality content creation and making enterprise communication faster and more effective." Adobe, with an estimated market cap of $150 billion, is best known for its creative tools like Photoshop and Premiere Pro – the latter widely used in professional video production. This partnership could expand Adobe's presence in AI-native video generation. It isn't Adobe's first foray into related startup investments, either. The company attempted to acquire Figma for $20 billion before backing out due to regulatory changes in the EU and U.K. Previous stakes in companies like VidMob and Captions were successful. Alongside Adobe's investment news, Synthesia announced it has surpassed $100 million in annual recurring revenue (ARR). Riparbelli said the company has grown 100% year over year, and the ARR puts it in "a very small group of AI-native companies with real commercial traction." Despite its rapid growth, the venture remains unprofitable. In 2023, Synthesia posted a pre-tax loss of £25.2 million on revenues of £25.7 million, according to filings with the U.K. Companies House. However, profitability is not a near-term priority. One of Synthesia's competitors is OpenAI's Sora tool. "We've never chased growth at any cost," Riparbelli said, pointing out that the company still has leftover capital from a previous funding round in 2023. It was last valued at $2.1 billion in January. Synthesia faces competition from rivals, including Colossyan, Filmora, and Veed.io. Open AI's Sora also offers a text-to-video model. This partnership with Adobe, the world's leading producer of creative software, signals a broader trend. AI video is being viewed as a tool for enterprise communication. It's becoming less about cameras and crews and more about text and creativity.

Apr 15, 2025 - 17:55

Adobe is diving deeper into artificial intelligence with a new investment in Synthesia, a British AI startup that lets users create videos with lifelike avatars and voiceovers in 140+ languages. CNBC officially confirmed that Adobe's venture capital arm gave Synthesia an undisclosed amount of capital as part of a "strategic partnership."

While neither company shared detailed terms of the deal, the move signals Adobe's growing interest in AI tools that can enhance and disrupt traditional video workflows. Synthesia's platform enables users to create videos using text prompts and AI-generated avatars — including customized versions of real people. Users can choose from over 230 pre-made avatars on Synthesia's site. They can also create their own in a Synthesia studio or remotely on personal devices.

Synthesia aims to make video production quicker and easier using text prompts and AI-generated avatars.

The company claims that over 70% of Fortune 100 companies use its tools. "We're building the world's leading AI video platform for enterprise, and Adobe's investment validates that direction," said Victor Riparbelli, Synthesia's CEO. "We share a vision: democratizing high-quality content creation and making enterprise communication faster and more effective."

Adobe, with an estimated market cap of $150 billion, is best known for its creative tools like Photoshop and Premiere Pro – the latter widely used in professional video production. This partnership could expand Adobe's presence in AI-native video generation. It isn't Adobe's first foray into related startup investments, either. The company attempted to acquire Figma for $20 billion before backing out due to regulatory changes in the EU and U.K. Previous stakes in companies like VidMob and Captions were successful.

Alongside Adobe's investment news, Synthesia announced it has surpassed $100 million in annual recurring revenue (ARR). Riparbelli said the company has grown 100% year over year, and the ARR puts it in "a very small group of AI-native companies with real commercial traction."

Despite its rapid growth, the venture remains unprofitable. In 2023, Synthesia posted a pre-tax loss of £25.2 million on revenues of £25.7 million, according to filings with the U.K. Companies House. However, profitability is not a near-term priority.

One of Synthesia's competitors is OpenAI's Sora tool.

"We've never chased growth at any cost," Riparbelli said, pointing out that the company still has leftover capital from a previous funding round in 2023. It was last valued at $2.1 billion in January. Synthesia faces competition from rivals, including Colossyan, Filmora, and Veed.io. Open AI's Sora also offers a text-to-video model.

This partnership with Adobe, the world's leading producer of creative software, signals a broader trend. AI video is being viewed as a tool for enterprise communication. It's becoming less about cameras and crews and more about text and creativity.