Adobe has agreed to acquire Topaz Labs, a developer of AI-powered image and video enhancement tools, as it expands the capabilities available across Firefly and Creative Cloud.
The financial terms were not disclosed. Adobe expects the transaction to close in the second half of 2026, subject to regulatory approval and other customary conditions.
Topaz Builds Tools for Enhancing Existing Media
Topaz Labs has spent more than 20 years developing software for improving photographs and video footage. Its products support tasks including upscaling, sharpening, stabilisation, noise reduction, frame interpolation, and archival restoration.
The company’s portfolio includes Topaz Photo, Topaz Video, Topaz Gigapixel, Astra, and Bloom. Its AI technology is used by millions of customers and 20 of the world’s 50 largest companies, according to Adobe.
Topaz also received an Emmy Award for its video enhancement technology. Its tools are used by photographers, filmmakers, content creators, and enterprise production teams.
Adobe said the technology can help professionals improve captured footage and combine it more consistently with AI-generated material. The tools can restore older media, increase resolution, remove visual noise, and sharpen details before final production.
Models Will Be Added Across Adobe Products
Adobe plans to integrate Topaz’s models into Firefly, Firefly Services, and Creative Cloud applications including Photoshop, Lightroom, and Premiere.
The companies already had a partnership before the acquisition. Topaz models were available in Adobe products for features such as generative image upscaling in Photoshop and Firefly Boards.
Adobe said Topaz Labs will continue offering its products as standalone services through its own website after the deal closes. Chief executive Eric Yang will remain in charge of the Topaz team within Adobe.
On-Device AI Is a Key Part of the Deal
Topaz will also bring its Neurostream technology to Adobe. Neurostream is designed to run large and complex AI models locally on consumer hardware rather than relying entirely on cloud computing.
Adobe said this capability could make its creative tools faster and more responsive while reducing the cost of using advanced models. Local processing may also make certain image and video features available to customers with limited connectivity or workflows that require files to remain on their devices.
The acquisition announcement comes as Adobe competes with Canva, Blackmagic Design, and other software companies adding AI features to image and video production tools.
Adobe has increasingly added third-party models to its platform alongside its own Firefly models. Acquiring Topaz gives it direct ownership of technology already used by many of its customers for improving image and video quality.
Featured image credits: Ian Usher via Flickr
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