Adobe acquires Topaz Labs to expand video and image AI

Adobe announced an agreement to acquire Topaz Labs, a developer of artificial intelligence models and tools for video and image enhancement.

The transaction was expected to close in the second half of 2026, subject to regulatory approvals and other customary closing conditions. Financial terms were not disclosed.

Topaz Labs develops tools for upscaling, sharpening, stabilization, frame interpolation, noise removal and footage restoration. Its products include Topaz Photo, Topaz Video, Topaz Gigapixel, Astra and Bloom.

Adobe planned to integrate Topaz Labs’ models across Adobe Firefly, Firefly Services and Creative Cloud applications, including Photoshop, Lightroom and Premiere. The company said the technology would support workflows that combine captured footage with AI-generated images and video.

“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,” said David Wadhwani, president of Adobe’s Creativity and Productivity Business. “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.”

The acquisition would also add Topaz Labs’ Neurostream technology, which is designed to run large AI models locally on consumer devices. Adobe said the capability could improve responsiveness and reduce reliance on cloud processing for some image and video tasks.

“Building technology to make images and videos look their absolute best has been our life’s work for more than twenty years,” said Eric Yang, CEO of Topaz Labs. “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.”

Topaz Labs’ products were expected to remain available as standalone offerings after the transaction closed. Yang would continue to lead the Topaz Labs team.

Freshfields US LLP served as Adobe’s legal adviser. AXOM Partners served as Topaz Labs’ exclusive financial adviser, while Goodwin Procter LLP served as its legal adviser.