AI startup Jasper acquires image generator Clipdrop from Stability AI for text & image creation

AI writing assistant startup Jasper announced on Thursday it has acquired the AI-powered photo application Clipdrop from Stability AI. This bold move signifies Jasper’s transition from solely focusing on text editing to embracing image creation and photo editing. The terms of the acquisition deal have not been disclosed, Reuters reported.

The acquisition marks a noteworthy shift in Stability AI’s strategy, a London-based startup renowned for its image generation AI model. Stability AI had initially acquired Clipdrop less than a year ago, highlighting a change in direction for the company. Emad Mostaque, CEO of Stability AI, said the deal enables them to concentrate on advancing “cutting-edge open models.”

As part of the acquisition, the Clipdrop team will integrate into Jasper effective immediately to maintain their leadership in research and innovation on multimodality. The Clipdrop team will continue to operate from their Paris headquarters, a hub renowned for AI innovation in Europe, and bolster Jasper’s presence in the region.

This strategic acquisition not only extends Jasper’s footprint into Europe but also signifies a commitment to invest in talent and customer acquisition in the region. The company is enthusiastic about contributing to the thriving AI community in Paris.

In a blog post, Jasper said: “Today we are happy to announce that we have acquired Clipdrop, an AI image creation and editing platform, from Stability AI. This acquisition signifies a significant step forward in Jasper’s capacity to deliver the most comprehensive, multimodal copilot for enterprise marketing teams.”

Funded in July 2020 by Google alumni Cyril Diagne, Damien Henry, and Jonathan Blanchet, the Paris, France-based Clipdrop uses open-source AI models to empower users to generate and edit photos. Having previously secured seed investment from Air Street Capital, Clipdrop was acquired by Stability AI in March 2023 for an undisclosed amount. At the time of acquisition, Clipdrop boasted a user base exceeding 15 million.

“Marketing is visual,” Jasper CEO Timothy Young said, adding, “The addition of Clipdrop to Jasper will advance our vision to be the most comprehensive end-to-end marketing copilot in the industry, powering all the formats, channels, and functions enterprise marketing teams need. A copilot this robust will enable the enterprises we serve to go beyond simple AI prompts to achieve more personalized marketing, better-informed automation, and improved optimization across their entire strategy.”

“This is a great way for us to not only expand the product capabilities, expand our AI talent, but also expand our footprint into Europe,” In a statement,” Young told Reuters.

Both Jasper and Stability AI are active participants and investors in generative AI, an arena dominated by OpenAI’s ChatGPT. Having each raised over $100 million from venture investors, achieving billion-dollar valuations, the two companies are now engaged in a competitive race to demonstrate sustained growth in the face of other startups and tech giants.

Jasper, known for its AI-based writing tool, has navigated layoffs and CEO changes in the past year, aiming to shift its focus from consumers to enterprises. The company plans to integrate Clipdrop into its platform while also maintaining it as a standalone product. This move aligns with Jasper’s strategy to diversify its offerings and solidify its position in the dynamic tech landscape.

Below is a video overview of Clipdrop.