Visual Electric, a Sequoia-backed AI design startup, has announced its acquisition by the search startup Perplexity. The strategic move, confirmed by Perplexity’s CEO Aravind Srinivas, will see the Visual Electric team integrated into a newly formed Agent Experiences group within Perplexity.

While the financial terms of the acquisition were not publicly disclosed, the news was shared by Visual Electric on its official website, indicating that the transition is set to unfold over the coming months. A significant consequence for Visual Electric users is the impending shutdown of its product within 90 days. During this period, users will be provided with the opportunity to export their data, and current subscribers will receive prorated refunds.

Visual Electric was established in 2022 by a team of experienced professionals: Colin Dunn, a former employee of Facebook and Dropbox; Adam Menges, previously with Apple; and Zach Stiggelbout, an ex-Microsoft engineer. The startup developed an innovative tool specifically tailored for designers, enabling them to generate images using artificial intelligence and perform intricate edits on an infinite canvas. The core concept behind the platform was to offer designers a collaborative whiteboard-like environment for ideation and concept development. Over time, Visual Electric expanded its capabilities to include support for video generation, further enhancing its appeal to creative professionals.

Prior to its acquisition, Visual Electric successfully raised $2.5 million in funding. This investment round attracted notable backers, including Sequoia, BoxGroup, and Designer Fund, underscoring the potential seen in its AI-powered design tools.