Adobe (NASDAQ:ADBE) shares rose 2.1% on Wednesday following the software company's announcement of pricing details for its generative artificial intelligence (GenAI) imaging tool.
Adobe also announced that Firefly is now generally and commercially available in its Creative Cloud, Adobe Express, and Adobe Experience Cloud.
Subscribers will have an allocated number of image generations per plan, with each generation without a delay costing 5 cents. OpenAI charges about 13 cents per credit on the web.
The highest-tier Adobe subscription will include 3,000 image generations per month. The free version allows users to create 25 images per month.
Analysts have noted that these AI tools have the potential to serve as a growth driver for Adobe.
“Adobe is taking a two-pronged approach to monetizing AI that combines a base price increase (due to more functionality) and a charge when you use more than your allocated credits. They put a wrinkle on the model as you can still use the tools once you run out of credits, but performance is impacted,” said Bernstein analysts.
BofA analysts said that the pricing “reflects meaningful value to AI offering.”
“Our key takeaway is that the pricing announcement reflects the potential for meaningful incremental Creative Cloud revenue (both subscription and consumption), which was the rationale for our upgrade last month,” they wrote.