Adobe unveils AI video generator at 50 cents per clip to compete with startups

Adobe has launched an AI video generator that creates short video clips for 50 cents per video. 

With these low costs, Adobe aims to compete with other AI startups like OpenAI and integrate artificial intelligence into its creative software package. 

Generate Video is available in public beta, following a limited early access testing period last year. The beta tool can be accessed via the redesigned Firefly web app, alongside new image generation and translation capabilities and AI credit subscription tiers for creators. Adobe added some minor improvements since it was first teased in September.

Adobe lowers AI video pricing to compete with industry giants

On Wednesday, Adobe unveiled its latest software, which creates 5-second videos with artificial intelligence for only 50 cents per video. In an attempt to compete with giants like OpenAI and Runway, Adobe is offering separate AI-specific subscriptions for only $9.99 and $29.99.

Ely Greenfield, chief technology officer of Adobe’s creative software business, noted that the affordable prices serve to increase adoption rates while staying competitive and that the math speaks for itself.

We’re pricing it at a lower point right now for adoption. If you do the math and look what’s out there, we’re competitive in the marketplace.

Ely Greenfield

This move most likely resulted from the massive 25% drop in Adobe’s shares in 2024, when investors feared that AI startups might subdue the company. Since then, the company has been integrating generative AI features into its star applications, like Photoshop.

The computer software company began launching tools powered by its generative AI Firefly Video Model at the end of 2024, starting with the Generative Extend tool in beta for Premiere Pro that can be used to extend the end or beginning of footage.

Adobe integrates AI into creative tools to compete with Runway and OpenAI

Adobe’s Generate Video tool rollout comes a few weeks after OpenAI launched its own text-to-video generator, Sora, to ChatGPT paid subscribers, allowing them to generate AI videos using prompts. 

Runway charges users 70 cents to $1.20 to generate a 5-second video using its newest AI model and has an unlimited plan for $95 per month. 

Adobe faces growing competition in the AI video market. In addition to Sora, Google is testing the second generation of its Veo AI video model, which, judging by early demo examples, looks more impressive than OpenAI’s model. ByteDance and Pika Labs have also recently announced new video-focused generative AI tools. 

Adobe seeks to stand out from the crowd by integrating AI into its existing tools and working towards better controls over its output. With the new subscriptions, users can generate AI videos, photos, and illustrations and use the credits for different audio features like transcription.

The computer software company claims that users have generated photos and other media using Firefly AI more than 18 billion times since December, when the numbers read 16 billion.

This new AI integration will generate high-definition videos as the company works towards higher-resolution models for professional production. 

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