Technologies

Adobe: Our New Generative AI Will Help Creative Pros, Not Hurt Them

The Firefly tools begin with image creation and font styling but soon will spread to Photoshop and other software.

In 2022, OpenAI’s Dall-E service wowed the world with the ability to turn text prompts into images. Now Adobe has built its own version of this generative AI technology with tools that begin a technological overhaul of the company’s widely used creative tools.

On Tuesday, Adobe released the first two members of its new Firefly collection of generative AI tools for beta testing. The first tool creates an image based on a text prompt like «fierce alligator leaping out of the water during a lightning storm,» with hundreds of styles that can tweak results. The other applies prompt-based styles to text, letting people create letters that look hairy, scaly, mossy or however else they want.

Firefly for now is available on Adobe’s website, but the company will build generative AI directly into other tools, starting with its Photoshop image editing software, Illustrator for designs and Adobe Express for creating quick videos. The company hasn’t revealed its pricing approach for the new tools.

Creative professionals might see Firefly as an incursion into their creative domain, going beyond mechanical tools like selecting colors and trimming videos into the heart and soul of their jobs. With AI showing new smarts when it comes to translating documents, interpreting tax code, composing music and creating travel itineraries, it’s not irrational for professionals to feel spooked.

Like other AI fans, though, Adobe sees artificial intelligence as the latest digital tool to amplify what humans can do. For example, Firefly eventually could let people use Adobe tools to tailor designs to individuals instead of just creating one design for a broad audience, said Alexandru Costin, vice president of Adobe’s generative AI work.

«We don’t think AI will replace creative creators. We think that creators using AI will be more competitive than creators not using AI. This is why we want to bring AI to the fingertips of all our user base,» Costin said. «The only way to succeed in AI is to embrace it.»

Adobe’s Firefly products are trained from the company’s own library of stock images, along with public domain and licensed works. The company has worked to reduce the bias in training data that AI models can reflect, for example that business executives are male.

AI is a «sea change»

Artificial intelligence uses processes inspired by human brains for computing tasks, trained to recognize patterns in complex real-world data instead of following traditional and rigid if-this-then-that programming. With advances in AI hardware, software, algorithms and training data, the field is advancing rapidly and touching just about every corner of tech.

The latest flavor of the technology, generative AI, can create new material on its own. The best known example, ChatGPT, can write software, hold conversations and compose poetry. Microsoft is employing ChatGPT’s technology foundation, GPT-4, to boost Bing search results, offer email writing tips and help build presentations

AI tools are sprouting up all over. Adobe has used AI for years under its Sensei brand for features like recognizing human subjects in Lightroom photos and transcribing speech into text in Premiere Pro videos. EbSynth applies a photo’s style to a video, HueMint creates color palettes and LeiaPix converts 2D photos into 3D scenes.

But it’s the new generative AI that brings new creative possibilities to digital art and design.

«It’s a sea change,» said Forrester analyst David Truog.

An illustration Adobe's use of generative AI to style the letter N so it looks mossy, golden, or made or thousands of red particles. — One of the first members of Adobe’s Firefly family of generative AI tools will style text based on prompts like «the letter N made of gold with intricate ornaments.»

Adobe

Alpaca offers a Photoshop plug-in to generate art, and Aug X Labs can turn a text prompt into a video. Google’s MusicLM converts text to music, though it’s not open to the public. Dall-E captured the internet’s attention with its often fantastical imagery — the name marries Pixar’s WALL-E robot with the surrealist painter Salvador Dalí.

Related tools like Midjourney and Stability AI’s Stable Diffusion spread the technology even further.

If Adobe didn’t offer generative AI abilities, creative pros and artists would get them from somewhere else.

Indeed, Microsoft on Tuesday incorporated Dall-E technology with its Bing Image Creator service.

Training AIs isn’t easy, but it’s getting less difficult, at least for those who have a healthy budget. Chip designer Nvidia on Tuesday announced that Adobe is using its new H100 Hopper GPU to train Firefly models through a new service called Picasso. Other Picasso customers include photo licensing companies Getty Images and Shutterstock.

Legal engineering

Developing good AI isn’t just a technical matter. Adobe set up Firefly to sidestep legal and social problems that AI poses.

For example, three artists sued Stability AI and Midjourney in January over the use of their works in AI training data. They «seek to end this blatant and enormous infringement of their rights before their professions are eliminated by a computer program powered entirely by their hard work,» their lawsuit said.

Getty Images also sued Stability AI, alleging that it «unlawfully copied and processed millions of images protected by copyright.» It offers licenses to its enormous catalog of photos and other images for AI training, but Stability AI didn’t license the images. Stability AI, DeviantArt and Midjourney didn’t respond to requests for comment.

Adobe wants to assure artists that they needn’t worry about such problems. There are no copyright problems, no brand logos, and no Mickey Mouse characters. «You don’t want to infringe somebody else’s copyright by mistake,» Costin said.

The approach is smart, Truog said.

«What Adobe is doing with Firefly is strategically very similar to what Apple did by introducing the iTunes Music Store 20 years ago,» he said. Back then, Napster music sharing showed demand for online music, but the recording industry lawsuits crushed the idea. «Apple jumped in and designed a service that let people access music online but legally, more easily, and in a way that compensated the content creators instead of just stealing from them.»

Adobe also worked to counteract another problem that could make businesses leery, showing biased or stereotypical imagery.

It’s now up to Adobe to convince creative pros that it’s time to catch the AI wave.

«The introduction of digital creativity has increased the number of creative jobs, not decreased them, even if at the time it looked like a big threat,» Costin said. «We think the same thing will happen with generative AI.»

Editors’ note: CNET is using an AI engine to create some personal finance explainers that are edited and fact-checked by our editors. For more, see this post.

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know