Perplexity Acquires Visual Electric - AI Design Startup

Visual Electric Acquired by Perplexity

AI-powered design startup Visual Electric, which previously received backing from Sequoia, has announced its acquisition by search company Perplexity. The integration will see the Visual Electric team incorporated into a newly formed Agent Experiences group within Perplexity.

Confirmation and Deal Details

Aravind Srinivas, CEO of Perplexity, publicly confirmed the acquisition via a post on X (formerly Twitter). Financial details pertaining to the deal have not been made public.

Product Sunset and User Support

As a result of this transition, Visual Electric will cease to operate as a standalone product within 90 days. Users of the platform will retain the ability to export their existing project data.

Furthermore, current subscribers to Visual Electric will receive prorated refunds for their subscriptions.

Founding and Development of Visual Electric

Established in 2022, Visual Electric was founded by a team of experienced engineers: Colin Dunn, previously of Facebook and Dropbox; Adam Menges, formerly with Apple; and Zach Stiggelbout, a veteran of Microsoft.

Core Functionality and Funding

The company’s primary offering was a design tool leveraging AI to enable users to generate images and perform edits on a virtually limitless canvas.

Initially conceived as a digital whiteboard for design ideation and concept development, Visual Electric later expanded its capabilities to include video generation.

To date, the startup had secured $2.5 million in funding through investments from Sequoia, BoxGroup, and Designer Fund.

Strategic Implications

This acquisition suggests Perplexity is focused on enhancing its platform with robust creative tools. The Agent Experiences group will likely leverage Visual Electric’s technology to deliver more interactive and visually engaging search results.

The move positions Perplexity to potentially compete with other platforms offering AI-driven content creation features.