Perplexity, a search startup, has acquired the team behind Visual Electric, an AI-powered design startup. The acquisition will integrate Visual Electric's personnel into a newly formed "Agent Experiences" group at Perplexity, as announced by the companies.
Aravind Srinivas, CEO of Perplexity, confirmed the acquisition via a post on X, stating the team would contribute to new consumer product experiences. Visual Electric simultaneously noted on its website that its team would join Perplexity. Deal terms for the acquisition were not disclosed by either party.
Visual Electric, founded in 2022 by Colin Dunn, Adam Menges, and Zach Stiggelbout—formerly of Facebook, Dropbox, Apple, and Microsoft, respectively—specialized in AI-driven image and video generation. The platform was designed to assist designers in concept development through an infinite canvas, enabling AI-powered ideation and edits. The company had previously secured $2.5 million in funding from investors including Sequoia, BoxGroup, and Designer Fund.
This integration marks a strategic move for Perplexity to expand its generative AI capabilities, extending beyond search functionality to encompass interactive and creative "Agent Experiences." The shift signals a broader industry trend of consolidating specialized AI tools into comprehensive platforms that aim to streamline digital workflows, impacting sectors that rely on AI-enhanced design and content generation.
As part of the transition, Visual Electric announced its product will be shut down within 90 days. Current users of Visual Electric will retain the ability to export their data during this period, and subscribers will receive prorated refunds for their services, according to the company's statement.
