Perplexity Acquires AI Design Startup Visual Electric’s Team
▼ Summary
– Visual Electric, an AI design startup, is being acquired by Perplexity and its team will join Perplexity’s new Agent Experiences group.
– Perplexity’s CEO Aravind Srinivas confirmed the acquisition via a post on X, though the deal terms were not disclosed.
– Visual Electric will shut down as a product in 90 days, with users able to export their data and subscribers receiving prorated refunds.
– The startup was founded in 2022 by former employees of Facebook, Dropbox, Apple, and Microsoft and offered AI tools for designers to create and edit images on an infinite canvas.
– Visual Electric had raised $2.5 million in funding from Sequoia, BoxGroup, and Designer Fund and had expanded to include video generation capabilities.
In a strategic move to enhance its artificial intelligence capabilities, Perplexity has acquired the team behind the AI design startup Visual Electric. This development sees the Visual Electric team transitioning into a newly formed Agent Experiences group at Perplexity, signaling a significant expansion of Perplexity’s product development efforts. The acquisition was officially confirmed by Perplexity’s CEO, Aravind Srinivas through a social media announcement.
Srinivas shared his enthusiasm about the acquisition, highlighting the exceptional talent of the team led by Colin Dunn and Adam Menges. He indicated that this collaboration would focus on creating innovative consumer product experiences intended for both Perplexity and Comet users in the near future. While the financial specifics of the deal remain confidential, the strategic importance is clear from the public statements.
As part of this transition, Visual Electric will cease operations as a standalone product within the next ninety days. The company has committed to ensuring a smooth process for its existing user base, allowing them to export their data and offering prorated refunds to current subscribers. This approach aims to maintain goodwill while winding down the original service.
Visual Electric originally launched in 2022 with founding team members Colin Dunn, previously with Facebook and Dropbox; Adam Menges, an Apple alumnus; and Zach Stiggelbout, who brought engineering experience from Microsoft. Their platform provided designers with AI-powered tools for image creation and editing on an expansive digital canvas, effectively serving as a virtual whiteboard for developing concepts and ideations. The startup later expanded its offerings to include video generation capabilities, demonstrating its evolving toolkit for creative professionals. Prior to the acquisition, Visual Electric had secured $2.5 million in funding from notable investors including Sequoia, BoxGroup, and Designer Fund, establishing a solid foundation for its innovative work in the AI design space.
(Source: TechCrunch)
