Perplexity AI has pulled the trigger on acquiring Visual Electric, an AI platform focused on image and video generation, aiming squarely at rivals like OpenAI’s Sora and Google’s viral Nano Banana model.
The deal, confirmed this week, will see Visual Electric wind down existing services in the next 90 days, with users promised refunds, data exports, and even a “gift” from Perplexity as part of the transition as reported here.
The timing couldn’t be sharper. Just days ago, Google’s Nano Banana stormed social media with quirky viral trends—from saree transformations to lifelike action figure edits—that had celebrities jumping in for the ride, and it’s already being tested inside Photoshop according to this coverage.
Perplexity clearly doesn’t want to be left in the dust. By snapping up Visual Electric, it gains not only technology but also talent from Colin Dunn and Adam Menges, who are now leading a new “Agent Experiences” group within the company.
Meanwhile, OpenAI has been stirring the pot with its standalone Sora app, a bold attempt to bring AI-generated video and image storytelling into social media feeds and to chip away at TikTok’s dominance, as detailed in a recent TechCrunch piece.
The pressure is mounting across the industry—Meta is already experimenting with AI short-form videos through its own “Vibes” feature.
It feels like everyone is racing to capture our eyeballs, one generated clip at a time.
There’s also a European subplot. Black Forest Labs, a startup founded by veterans of Stability AI, is raising a monster round to expand its Flux image models, marking Europe’s determination to have its own say in the creative AI boom, as noted in a Financial Times report.
Perplexity’s move can be read as part of this larger chess game: consolidate fast, innovate faster, and hope consumers buy in.
What’s striking here isn’t just the acquisition—it’s the bigger shift. We’re watching AI move from novelty into culture, from parlor tricks into business strategy.
But if you ask me, there’s always a danger in the hype cycle. Will users actually pay for these services, or will the buzz fade once the next viral trend dies?
Either way, Perplexity has shown it’s willing to take risks to stay in the spotlight, and this acquisition is its loudest statement yet.