Adobe NASDAQ:ADBE shares climbed nearly 6% in Wednesday trading after investors reacted positively to the company's planned acquisition of AI imaging software developer Topaz Labs..
Adobe said the deal is expected to strengthen its artificial intelligence capabilities by integrating Topaz Labs' image and video enhancement technology into Adobe Firefly, Firefly Services and Creative Cloud applications. Financial terms of the transaction were not disclosed.
Adobe also expects to add Topaz Labs' Neurostream technology, which allows advanced AI models to run directly on consumer devices rather than relying on cloud-based computing. The capability could improve processing speed and support offline AI-powered editing features across Adobe's creative software portfolio.
Topaz Labs has specialized in AI-powered image and video enhancement for more than two decades. In 2025, the company received a Technology & Engineering Emmy Award for its AI-based image and video restoration technology used in television catalog restoration. Adobe said the acquisition is intended to broaden the range of AI tools available to photographers, filmmakers and other content creators as demand for generative AI and professional editing software continues to expand.