Synthesia Turned Down $3B from Adobe: Now Worth $4B

When a startup turns down a $3 billion acquisition offer from Adobe, they either have the biggest ego in tech or they know something the rest of us don't. In Synthesia's case, it appears to be the latter.

Last week, this British AI avatar company raised $200 million in a Series E round led by Google Ventures and NVentures (Nvidia's venture capital arm). The valuation: $4 billion. Double what it was 12 months ago.

I won't sugarcoat it: after months of following this company and testing their product hands-on, I have strong opinions about whether this valuation makes sense. Let me share all of them.

What Synthesia Is and Why It Matters

Synthesia is a platform that lets you create professional videos with hyperrealistic AI avatars without cameras, actors, or production crews. You write a script, pick an avatar, and within minutes you have a video that looks like it was shot in a professional studio.

Sounds like magic, but the market has validated the technology in brutal fashion:

My verdict is clear: these numbers don't lie. When Microsoft, SAP, Xerox, Amazon, Heineken, and Zoom use your product to train their employees, you're doing something right.

The Round That Changes Everything

The Numbers

This $200 million Series E is Synthesia's fifth round. Total raised now exceeds $536 million.

The Investors

This is where the story gets interesting. The two main investors are:

1. GV (Google Ventures): Alphabet's venture capital arm, leading the round
2. NVentures: Nvidia's investment division

When Google and Nvidia bet together on an AI company, it's no coincidence. Both have strategic interest in AI-generated video becoming the standard. Google for its cloud ecosystem and Nvidia because every generated video needs GPUs.

Other investors include Accel, Kleiner Perkins, NEA, and a new fund from Matt Miller, former Sequoia partner.

Why They Turned Down $3 Billion from Adobe

In October 2025, Adobe offered to acquire Synthesia for $3 billion. CEO Victor Riparbelli said no.

If you ask me directly, it was a risky but probably correct decision. Adobe wanted to integrate Synthesia's avatars into their creative suite. But Synthesia doesn't want to be an Adobe feature. They want to be the platform for enterprise video's future.

Four months after rejecting that offer, they're worth $4 billion. The numbers proved them right.

The Product: Does It Actually Work?

After weeks of hands-on use with Synthesia, I can give an honest verdict.

What It Does Well

1. Impressively Realistic Avatars

Synthesia has over 240 stock avatars, diverse in ethnicity, age, and appearance. Quality has improved dramatically in the past year. Lip movements are synchronized with audio in 140+ languages.

2. Production Speed

What used to take weeks (hiring actors, booking studios, filming, editing) now takes hours. For corporate training, this is revolutionary.

3. Multilingual Scalability

A video in English can be automatically translated to Spanish, Mandarin, German... with lip-sync included. Heineken trains 70,000 employees in multiple languages using this technology.

4. Video Agents (The 2026 Breakthrough)

This is the feature that surprised me most. Video Agents are avatars that don't just talk—they listen, understand, and respond in real-time. Imagine an avatar that can:

• Conduct candidate screening interviews
• Provide interactive technical support
• Lead personalized training sessions

It's basically a chatbot with a face and voice. And it works better than I expected.

What Needs Improvement

1. Limited Facial Expressions

The avatars are good for corporate presentations but don't convey complex emotions. If you need an emotional or dramatic video, this isn't for you.

2. Opaque Enterprise Pricing

The Creator plan costs $89/month (30 minutes of video). But enterprise plans are "custom pricing," which is code for "very expensive." Companies report contracts of $100,000+ annually.

3. Variable Rendering Times

Sometimes a 3-minute video takes 5 minutes to generate. Sometimes 20. Consistency could improve.

Current Pricing

Competitive Comparison

Synthesia isn't alone in this market. Here's how it compares to main rivals.

Synthesia vs HeyGen

My take: HeyGen is better for individual creators and social media content. Synthesia clearly wins on enterprise due to security and B2B features.

Synthesia vs Colossyan

Colossyan is cheaper for unlimited usage, but Synthesia has better avatar quality and Video Agents are a clear differentiator.

The Elephant in the Room: Deepfakes

I can't write about Synthesia without addressing the ethical issue. This technology can be used to create fake videos of real people.

Freedom House documented in 2023 that governments in Venezuela, China, Burkina Faso, and Russia used Synthesia avatars to create propaganda. A Wall Street Journal reporter created a deepfake of herself that fooled her own bank.

CEO Victor Riparbelli has been direct: "It's going to be a problem, no doubt about it."

Synthesia's Security Measures

1. Biometric Consent: To create a personal avatar, you must record a live video giving explicit permission
2. Content Credentials: Cryptographic watermarks identifying content as AI-generated
3. Content Moderation: User screening and script vetting
4. ISO 42001: First AI video company to obtain this certification

Are these enough? My verdict: they do more than most competitors, but technology advances faster than safeguards. It's a problem without a perfect solution.

Real-World Use Cases

Corporate Training (The Core Use Case)

This is Synthesia's bread and butter. Specific examples:

• Heineken: Trains 70,000 employees in multiple languages
• Zoom: Trains over 1,000 salespeople with consistent videos
• BSH Home Appliances: 60,000+ employees receive training via avatars
• Anonymous logistics company: Created 100+ compliance videos in less than a year, 90% faster than traditional methods

Marketing and Communication

• Product explainer videos without hiring actors
• CEO messages translated to all company languages
• Personalized demos for each prospect

Onboarding

Several companies report reducing onboarding time from 8 to 5 weeks using Synthesia videos instead of in-person sessions.

Is the $4 Billion Valuation Worth It?

This is the billion-dollar question. Or rather, the four-billion-dollar question.

Arguments For

1. $150M ARR growing at 45%+ annually: If they maintain this pace, they'll hit $200M+ in 2026
2. 70% revenue from enterprise: Large contracts are sticky and scalable
3. 90% of Fortune 100: Hard to displace once you're in
4. Video Agents: Differentiated product with no clear competitor equivalent
5. Market multiples: At 25-30x ARR, $4B is aggressive but not crazy for high-growth SaaS

Arguments Against

1. Fierce competition: HeyGen, D-ID, Colossyan are improving rapidly
2. AI video commoditization: Open-source models are catching up
3. Regulatory dependency: A deepfake scandal could change everything
4. Pricing pressure: Competitors offer cheaper unlimited plans

My Final Verdict

If you ask me directly: the valuation is high but justifiable if three conditions are met:

1. Video Agents becomes a significant revenue product (not just a demo)
2. They maintain 40%+ annual growth
3. No deepfake scandal destroys market trust

If all three happen, Synthesia is worth $4 billion or more. If any fails, the valuation will correct.

Who Is Synthesia For?

I Recommend Synthesia If:

• You're a company with 500+ employees needing scalable training
• You operate in multiple languages and countries
• Your corporate video budget exceeds $50,000/year
• You need regulatory compliance (SOC 2, GDPR, ISO)

I Don't Recommend Synthesia If:

• You're an individual creator or small business (check out HeyGen)
• You need highly emotional or dramatic videos
• Your budget is limited and you need unlimited videos (check out Colossyan)
• You want full control over the technology (no on-premise version available)

Conclusion

Synthesia has gone from curious startup to dominating the corporate AI video market. 90% of the Fortune 100, $150M in ARR, investment from Google and Nvidia, and rejecting $3B from Adobe are not minor signals.

After weeks of hands-on use with the product, my conclusion is clear: for corporate training at scale, there's nothing better in the market right now. Video Agents are the feature that could separate Synthesia even further from the competition.

Is it worth $4 billion? It's a bet, but an informed one. The technology works, customers pay, and the AI video market is just getting started.

If your company is still recording training videos with cameras and actors, you're overpaying. And if your competitors are already using this and you're not, you're at a disadvantage.

It's that simple.

Frequently Asked Questions

Can I create my own avatar with my face?

Yes, Synthesia allows custom avatar creation. The process requires recording a consent video and costs approximately $1,000/year additional.

Do videos have watermarks?

The free plan includes watermarks. Paid plans do not.

What languages does it support?

Over 140 languages and accents, including English, Spanish, Mandarin, German, French, Portuguese, Japanese, Korean, Arabic, and many more.

Is Synthesia secure for confidential information?

Synthesia has SOC 2 Type II certification, is GDPR compliant, and is the first AI video company with ISO 42001. For enterprise standards, it's among the most secure in the market.

How long does it take to generate a video?

Depends on length and complexity. A typical 3-5 minute video takes between 5 and 20 minutes to render.