Kaltura Acquires eSelf, Snap's AI Creator, for $27M

Kaltura Acquires eSelf.ai for $27 Million

Kaltura, an AI video platform headquartered in New York, has announced the acquisition of eSelf.ai, an Israel-based startup specializing in conversational avatars. The deal, valued at approximately $27 million, will bring eSelf’s technology into Kaltura’s existing suite of video solutions.

eSelf.ai develops AI-generated digital humans capable of engaging in conversations with users. Their platform supports over 30 languages and provides a user-friendly studio for the creation, customization, and deployment of photorealistic digital avatars.

eSelf.ai’s Expertise and Team

Founded in 2023 by Alan Bekker and Eylon Shoshan, eSelf.ai possesses significant technical capabilities in speech-to-video generation. They also excel in low-latency speech recognition and screen understanding, enabling avatars to interact with on-screen content.

Both co-founders, along with the entire eSelf.ai team of approximately 15 AI specialists, will join Kaltura to facilitate the integration of their technology.

Kaltura’s Strategic Rationale

According to Ron Yekutiel, Kaltura’s co-founder and CEO, the acquisition was a deliberate move. He highlighted Bekker’s prior success with Voca, a company acquired by Snap in 2020, and his expertise in natural language processing and computer vision.

Kaltura provides cloud-based software for advanced video applications, including corporate video portals, webinar tools, and video learning integrations for universities.

The company also offers virtual classroom products and comprehensive TV streaming solutions, serving over 800 enterprise clients. These include major corporations like Amazon, Oracle, and IBM.

Integration of eSelf.ai’s Technology

Kaltura intends to integrate eSelf.ai’s virtual agent technology across its video offerings. This integration will allow for agents capable of listening, speaking, and interpreting user screens in real-time.

Yekutiel emphasized the strategic importance of the acquisition, noting eSelf.ai’s leadership in real-time, synchronous conversation and its robust speech-to-text and text-to-speech technology.

The Evolution of Video and Conversational AI

For many years, video has primarily been used for content streaming and management. However, this is rapidly evolving. Artificial intelligence now enables the instant generation of hyper-personalized and contextual videos.

“We started with video, then moved to personalized video, and now, with eSelf’s technology, we’re adding human-like capabilities to make our AI agents conversational and expressive,” explained Yekutiel.

Kaltura is transitioning into a video-based customer and employee experience provider, utilizing video as the primary interface. Unlike many avatar companies, Kaltura offers a complete solution – avatar, intelligence, and enterprise knowledge integration.

Future Applications and Market Focus

Kaltura plans to launch standalone, embeddable agents for various applications, including sales, marketing, customer support, and training. Key target sectors include education, media, e-commerce, finance, healthcare, and pharmaceuticals.

Regarding reports of a potential sale or merger, Yekutiel stated that Kaltura has explored various opportunities but did not progress to the stage of the reported transactions.

Kaltura’s Acquisition History

This acquisition represents Kaltura’s fourth to date. Previous acquisitions include Tvinci (2014), Rapt Media (2018), and Newrow (2020). eSelf.ai’s last funding round secured $4.5 million in December 2024.

Kaltura, a publicly traded company since 2021, currently generates approximately $180 million in revenue and is profitable based on adjusted EBITDA and cash flow. The company employs around 600 people.