Adobe agreed to acquire Topaz Labs, a Texas company that makes AI models and apps for upscaling, sharpening and restoring photos and video. Adobe announced the deal on June 25, 2026, after signing a definitive agreement the previous day.
Adobe did not give a price in its announcement. Its quarterly report filed with the U.S. Securities and Exchange Commission later stated that it agreed to buy Topaz Labs for approximately $340 million, primarily in cash and subject to customary purchase price adjustments, and that it planned to pay with cash on hand. In the same filing Adobe said it expected the deal to close in the fourth quarter of its 2026 fiscal year, subject to regulatory approvals.
Topaz's models will be built into Adobe Firefly, Firefly Services and Creative Cloud apps, while its own products stay on sale as standalone software through its website. Chief executive Eric Yang continues to lead the Topaz team. TV Technology reported on September 23, 2026 that the deal had closed and that Yang was joining Adobe's Digital Video and Audio team.
What Topaz Labs built
Topaz Labs has made image and video enhancement software for more than two decades. Its products include Topaz Video, Topaz Photo, Topaz Gigapixel, Astra for AI video upscaling, Wonder for image retouching, and Bloom. The models handle upscaling, sharpening, stabilisation, frame interpolation, noise removal and the restoration of old footage.
The company says its technology is used by millions of customers, including 20 of the world's 50 largest companies, and by filmmakers working on documentary restoration and archival projects. Its video technology won an Emmy Award in 2025.
Topaz also developed Neurostream, a technology that lets large AI models run locally on consumer computers and graphics cards instead of only on high-end systems or in the cloud. Some of Topaz's tools were already available inside Creative Cloud before the deal.
“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.”
Why Adobe is buying
Adobe said demand for its AI products, including the Firefly creative AI studio and the Firefly Services APIs for enterprises, had been strong. It argued that creators increasingly mix footage they shoot with AI-generated images and video, and need tools that make both look consistent at higher resolution.
Enhancement models fit that workflow because they improve existing material rather than generate new material from scratch. Adobe said Topaz's work on running large models on devices would let it offer faster, more responsive tools and make advanced AI cheaper for customers to use.
TechCrunch noted that Adobe competes with Canva and with Blackmagic Design, the maker of DaVinci Resolve, and described the deal as a way to keep video editors working inside Adobe's apps instead of turning to other software for enhancement.
The company and its team
Topaz Labs is based in Addison, in the Dallas area. In January 2025 Bisnow reported that the company was moving into a headquarters of more than 28,000 square feet, about four times the size of its previous office, and planned to add 130 jobs by the end of 2027.
Adobe did not disclose Topaz's revenue, headcount or ownership, and no outside funding rounds were reported. AXOM Partners acted as Topaz's exclusive financial adviser and Goodwin Procter as its legal adviser, while Freshfields advised Adobe.
Yang said that making images and videos look their best had been the company's work for more than twenty years, and that Topaz and Adobe both believed technology should serve human creativity rather than replace it.
What happens to Topaz customers
Adobe said Topaz customers of all sizes would get continued support and investment, and that the standalone products would remain available. Newsshooter pointed out that Adobe had not detailed pricing, licensing or roadmap changes, and that some users were asking whether features would end up behind Creative Cloud subscriptions.
According to TV Technology's report on the completed deal, Topaz technology is available in Adobe Firefly and Photoshop, Topaz continues as a standalone brand, and its apps and models remain on sale as separate products. Adobe's vice president of product marketing for creative professionals said integrating Topaz tools into Creative Cloud workflows would let editors spend less time moving between tools.
