Perplexity acquires the team behind Sequoia-backed AI design startup Visual Electric, marking a major move in its AI innovation strategy. The team will join Perplexity’s new Agent Experiences group, signaling a strong push into design-driven AI solutions.
Image Credits:Visual Electric
Why This Acquisition Matters
Perplexity’s CEO, Aravind Srinivas, confirmed the news in a post on X, highlighting the company’s focus on building more advanced AI experiences. While the financial terms of the deal remain undisclosed, the impact on Perplexity’s product roadmap could be significant.
Visual Electric’s Shutdown And Transition
As part of the acquisition, Visual Electric will officially shut down its product within 90 days. The company has assured users that they will be able to export their data, while paying subscribers will receive prorated refunds. This smooth transition ensures minimal disruption for its community.
The Story Behind Visual Electric
Founded in 2022, Visual Electric quickly attracted attention with its AI-powered design tools. The platform allowed designers to generate images, apply edits on an infinite canvas, and later, experiment with video generation. Its vision was to empower designers to ideate freely—almost like sketching on a digital whiteboard.
The startup was co-founded by Colin Dunn (ex-Facebook and Dropbox), Adam Menges (ex-Apple), and Zach Stiggelbout (ex-Microsoft). With $2.5 million in funding from Sequoia, BoxGroup, and Designer Fund, Visual Electric carved out a unique place in the AI design space.
What’s Next For Perplexity
With this acquisition, Perplexity is doubling down on AI innovation and user-focused creativity. The addition of Visual Electric’s experienced team strengthens its ability to build cutting-edge design and agent experiences—likely expanding beyond search into AI-driven creative workflows.
This move positions Perplexity as more than just a search startup—it’s evolving into a broader AI ecosystem where design, creativity, and intelligent agents intersect.
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