Perplexity Expands AI Capabilities with Visual Electric Team Acquisition
In a significant talent acquisition move, search startup Perplexity has acquired the team behind Sequoia-backed AI design platform Visual Electric. The development was confirmed through multiple sources, including an official announcement from Perplexity’s leadership.
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Visual Electric revealed on its website that its team will be joining Perplexity’s newly formed Agent Experiences group. This strategic acquisition represents Perplexity’s continued expansion beyond traditional search into broader AI applications.
Transition Timeline and User Support
As part of the transition, Visual Electric will cease operations as a standalone product within 90 days. The company has committed to ensuring a smooth transition for existing users, with comprehensive data export capabilities and prorated refunds for current subscribers.
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This acquisition was covered in detail by industry analysts, providing valuable context about the strategic implications for both companies involved in the transaction.
Visual Electric’s Background and Technology
Founded in 2022 by former Facebook and Dropbox employee Colin Dunn, ex-Apple staffer Adam Menges, and former Microsoft engineer Zach Stiggelbout, Visual Electric specialized in AI-powered design tools. The platform enabled designers to generate images using artificial intelligence and apply edits across an infinite digital canvas.
The startup’s vision centered on helping designers develop concepts and ideations in a collaborative whiteboard environment. Over time, the company expanded its capabilities to include video generation features, demonstrating its commitment to evolving with designer needs.
Prior to the acquisition, Visual Electric had secured $2.5 million in funding from prominent investors including Sequoia Capital, BoxGroup, and Designer Fund, highlighting the strong industry confidence in their technology and team.
Strategic Implications
This talent acquisition signals Perplexity’s growing interest in expanding its AI capabilities beyond search functionality. The integration of Visual Electric’s team and expertise could potentially enhance Perplexity’s offerings in creative AI applications and user experience design.
While specific terms of the deal remain undisclosed, the acquisition represents another example of the ongoing consolidation and talent movement within the competitive artificial intelligence landscape.
