Adobe and Google Cloud partner to integrate AI models into creative apps

LOS ANGELES - Adobe (NASDAQ:ADBE), a prominent software industry player with an impressive 89% gross profit margin and market capitalization of $152 billion, and Google Cloud announced an expanded strategic partnership to integrate Google’s advanced AI models into Adobe’s creative applications, according to a press release statement issued at Adobe MAX conference. According to InvestingPro analysis, Adobe currently trades below its Fair Value, suggesting potential upside for investors.

Under the partnership, Adobe customers will gain access to Google’s AI models including Gemini, Veo, and Imagen directly within Adobe applications such as Firefly, Photoshop, Express, and Premiere. The integration aims to help users generate higher-quality images and videos with greater precision.

Enterprise customers will also be able to customize Google’s AI models through Adobe Firefly Foundry using their proprietary data to create brand-specific content at scale. Google Cloud’s Vertex AI platform will support this customization while providing data commitments that customer information will not be used to train Google’s foundation models.

"Our partnership with Google Cloud brings together Adobe’s creative DNA and Google’s AI models to empower creators and brands to push the boundaries of what’s possible," said Shantanu Narayen, chair and chief executive officer of Adobe, in the press release.

Thomas Kurian, chief executive officer of Google Cloud, added that the integration gives "everyone, from creators and creative professionals to large global brands, the AI tools and platforms they need to dramatically speed up content creation."

The announcement follows Adobe’s recent partnership with YouTube, which will bring Premiere’s video editing tools to YouTube Shorts through a new creation space called Create for YouTube Shorts, coming soon to the Premiere mobile app.

The companies did not disclose financial terms of the partnership or specific launch dates for the integrated features.

In other recent news, Adobe announced several AI-powered enhancements to its GenStudio platform, aimed at improving personalized content creation for businesses across various marketing channels. These additions, unveiled during Adobe MAX, include Firefly Design Intelligence and Firefly Creative Production for Enterprise. Additionally, Adobe has partnered with YouTube to integrate its Premiere mobile app with YouTube Shorts, allowing creators to access professional-level video editing tools directly within the platform. This new feature, "Create for YouTube Shorts," offers editing capabilities such as effects, transitions, and templates. Furthermore, Adobe introduced an AI Assistant in beta for Adobe Express, providing users with a conversational design experience to simplify content creation. The company also launched its Premiere video editing application for iPhone, offering mobile creators free access to professional editing tools, including multi-track timeline editing and 4K HDR support. In a separate development, Morgan Stanley downgraded Adobe’s stock from Overweight to Equalweight, citing slower monetization of AI features as a concern. The downgrade also included a revised price target of $450, down from $520, reflecting the firm’s view on Adobe’s Digital Media annual recurring revenue growth.

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