Perplexity Expands AI Capabilities with Visual Electric Team Acquisition
In a significant talent acquisition move, search startup Perplexity has acquired the team behind Sequoia-backed AI design platform Visual Electric. The Visual Electric team confirmed they will be joining Perplexity’s newly formed Agent Experiences group, marking a strategic expansion of Perplexity’s artificial intelligence capabilities.
Perplexity CEO Aravind Srinivas officially confirmed the acquisition through a social media announcement, though specific financial terms of the deal remain undisclosed. This development represents another interesting move in the competitive AI landscape that we’ve been tracking through our industry monitoring sources.
Transition Plan for Visual Electric Users
As part of this transition, Visual Electric will cease operations as a standalone product within 90 days. The company has committed to ensuring a smooth transition for existing users, with comprehensive data export capabilities and prorated refunds for current subscribers.
Visual Electric distinguished itself in the crowded AI design space by offering designers an innovative platform for creating and editing images on an infinite canvas. Founded in 2022 by former Facebook and Dropbox employee Colin Dunn, ex-Apple staffer Adam Menges, and former Microsoft engineer Zach Stiggelbout, the startup had secured $2.5 million in funding from prominent investors including Sequoia, BoxGroup, and Designer Fund.
From Design Tool to AI Agent Innovation
The platform initially focused on helping designers develop concepts and ideations through a digital whiteboard interface, later expanding to include video generation capabilities. This acquisition highlights the growing trend of AI companies seeking specialized talent to enhance their agent-based experiences, a strategic area that continues to evolve rapidly in the artificial intelligence sector.
This acquisition underscores the ongoing consolidation in the AI industry as established players seek to bolster their capabilities through strategic talent acquisitions. The integration of Visual Electric’s expertise into Perplexity’s Agent Experiences group suggests interesting developments ahead for AI-powered design and search integration.
