According to an analysis, Adobe (ADBE), a company that sells software for creating and editing content such as graphics, text, and video, faces concerns about intensifying competition after the unveiling of Open AI’s video AI Sora.
Adobe’s stock price fell 7.4% on the 16th (local time). This is interpreted as a result of heightened competition concerns in the graphic software market following OpenAI’s announcement of the video AI Sora.
Sora offers a feature that converts text input through a prompt into a one-minute video. While it is not perfect for applying physical laws and other detailed aspects, market interest in this is increasing due to the potential for high-quality video content production through generative AI.
Ko Min Seong, a researcher at NH Investment & Securities, stated, “Adobe is somewhat behind its competitors in video content creation capabilities.” However, he also predicted that “the graphics AI market is still in its early stages, and Adobe’s competitiveness is expected to increase in the future.”
Adobe is currently offering a variety of creation and editing features for images and text through Firefly about generative AI features. Regarding video content, it only offers video editing features through AI, and the Text to Video feature is still under development.
Researcher Ko Min Seong advised, “While fierce competition is expected with the announcement of OpenAI’s Sora, the graphic AI market is still in its early stages. Rather than worrying about intensified competition, we should focus on the overall growth momentum of the market.”
Adobe owns various graphic editing software within Creative Cloud, including Premiere Pro. Therefore, Creative Cloud customers can immediately modify the detailed elements of content created through generative AI. This Synergy between the products is seen as a point of differentiation among Adobe and its competitors.
The researcher stated, “The company also has a competitive advantage over others regarding copyright issues with AI training data.”
Copyright issues with training data could restrict the commercial use of completed content or legal disputes with artists. Unlike competitors who use unverified graphic data for AI training, the company uses images and videos that it owns or that are free from copyright issues, freeing it from such concerns.
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