Adobe to acquire AI specialist Topaz Labs

The acquisition is intended to strengthen Adobe's AI capabilities across its Firefly platform and Creative Cloud applications

Adobe has entered into a definitive agreement to acquire Topaz Labs, an AI company focused on video and image enhancement technology. The acquisition is intended to strengthen Adobe's AI capabilities across its Firefly platform and Creative Cloud applications as demand grows for tools that support hybrid creative workflows.

The transaction, which is expected to close in the second half of 2026 subject to regulatory approvals and customary closing conditions, will see Topaz Labs continue operating its standalone products while joining Adobe's creative AI portfolio. Eric Yang will remain CEO of Topaz Labs after the deal is completed.

Acquisition expands AI enhancement capabilities

Topaz Labs develops AI models that improve existing video and image content by sharpening details, reducing noise, restoring footage, increasing resolution and stabilising video. Its technology is used across filmmaking, photography, documentary restoration, social media production and archival projects.

Adobe plans to integrate Topaz Labs' AI models into Adobe Firefly, Firefly Services and Creative Cloud applications, including Photoshop, Lightroom and Premiere. The company said the acquisition will provide creators with additional tools to enhance captured footage, restore archived content and combine AI-generated and traditionally captured media.

Local AI processing to support creators

The acquisition also brings Topaz Labs' proprietary Neurostream technology to Adobe. The technology enables large AI models to run locally on consumer devices, reducing reliance on cloud-based processing and expanding access to advanced video and image enhancement tools.

David Wadhwani, President, Creativity & Productivity Business, Adobe: "Adobe Firefly, Firefly Services and Creative Cloud offer the industry’s best creative tooling and top AI models for creators and brands, and we’re excited to build on the strong demand for these products with Topaz Labs. Creators are creating more content by mixing captured and generated images and video, and with Topaz Labs we will give every creator the quality and control to easily produce that content at higher quality and resolution."

Topaz Labs products to remain available

Following the completion of the acquisition, Topaz Labs products will continue to be available as standalone offerings through the company's website. Adobe also said it will continue supporting existing customers while investing in future product development.

Eric Yang, CEO, Topaz Labs: "Building technology to make images and videos look their absolute best has been our life’s work for more than twenty years. We’ve always believed that technology should serve human creativity rather than replace it — and so has Adobe. Together, we believe we can dramatically expand what’s possible for filmmakers and creators everywhere."

Freshfields US LLP is acting as legal advisor to Adobe. AXOM Partners is serving as exclusive financial advisor to Topaz Labs, while Goodwin Procter LLP is acting as legal advisor to the company.

www.adobe.com

www.topazlabs.com

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