PicsArt, a SoftBank-based digital creation platform that recently hit unicorn status, announced today that it has acquired DeepCraft, a research and development firm. The transaction is made up of both cash and stock, with an overall value of around $7 million. However, the specifics of the deal are not being revealed.
PicsArt has expanded its creative tools to include a variety of digital creation and editing capabilities for both amateurs and professionals, making image and video editing more enjoyable.
DeepCraft’s artificial intelligence technical talent and breakthroughs in computer vision and machine learning will, according to the business, improve Picsart’s own A.I. technology and help the firm better support the app’s recent surge in video production.
The staff will also assist Picsart’s AI research & development arm, PAIR (Picsart AI Research), by providing additional senior personnel, according to the company.
Armenia-based DeepCraft was the nation’s first unicorn, specializing in video and image processing. Its co-founders, Armen Abroyan (CEO) and Vardges Hovhannisyan (CTO), have over 20 years of experience in artificial intelligence and machine learning, and they are well-known in their neighborhood for their skill.
Nicolas Abroyan previously worked as the Deputy Minister for the Republic of Armenia’s Ministry of High Technology, as a Lead AI Architect at RedKite, and as a Senior Software Developer at Synopsys. Meanwhile, Hovhannisyan has spent 13 years working in R&D at Synopsys.
The team at DeepCraft worked on a contract basis with Krisp, PatriotOne, and even the Armenian government. This project has come to an end, and the team will now start working out of Picsart’s offices in Yerevan. As a result of the agreement, the complete DeepCraft staff of eight senior machine learning and video engineers will become full-time employees for Picsart.
PicsArt has been developing video editing software since its debut in the market in 2018, when it bought EFEKT (previously D’efekt). Usage of the Picsart platform has increased dramatically in recent years, especially as social media influencers and e-commerce companies have taken to video.
So far this year, more than 180 million videos have been created on the PicsArt app – a 70% increase over last year. It now offers hundreds of effects and several video editing solutions, and it intends to expand its range with artificial intelligence and cloud technology.
DeepCraft, the company behind Picsart, is interested in how the team’s talents and technical knowledge may assist it continue to support video in 2022, according to sources.
However, according to the company, Picsart will not be obtaining unique IP from DeepCraft as part of the partnership.
DeepCraft’s cooperation with PicsArt began before the acquisition. The two had previously worked together on several technological advancements, as PicsArt already had a relationship with DeepCraft ahead of the deal.
“DeepCraft is a unique team of deep technology engineers, and we’ve already been working with them to build our core technologies for over a year,” said Picsart co-founder and CTO Artavazd Mehrabyan.
“As we invest even further into advancing our video capabilities, we are confident the DeepCraft team will play a significant role in building the future of video,” he added.
Picsart Inc’s $130 million Series C back in August was led by SoftBank’s Vision Fund 2, and the company’s first purchase since then has been DeepCraft. The round raised Picsart to a unicorn status, from its previous worth of around $600 million in 2019.
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