Adobe (NASDAQ:ADBE) has invested in Synthesia, a British artificial intelligence startup, in a bet that the technology will transform video production.
Synthesia told reporters Adobe’s venture capital arm injected an undisclosed amount of funds into the startup as part of a “strategic” partnership, without elaborating further on financial and commercial terms.
The startup, which says it serves more than 70% of the Fortune 100, sells a platform that businesses can use to develop videos with life-like avatars generated by AI. Individuals can make their own AI avatars, either at one of Synthesia’s production studios or on a personal device.
Adobe, a creative technology powerhouse valued at roughly $150 billion, is best known for the Photoshop image editing tool. The company also makes Premiere Pro, a video editing platform widely used by professionals in broadcast media, advertising and other industries.
It’s not the first time Adobe has placed a big bet on a venture-backed startup. It previously tried to acquire design platform Figma for $20 billion, but called the deal off following scrutiny from European Union and U.K. regulators. Adobe is also an active venture investor, backing startups such as Captions and VidMob.
In addition to the investment from Adobe, Synthesia also announced that it hit $100 million in annual recurring revenue (ARR) — a measure of annual revenue generated from subscriptions that renew each year.
ADBE shares gained $3.16 Tuesday to $354.07.