Adobe Integrates Google's Gemini 2.5 Flash Amid 35% Stock Decline

Google has announced the release of its new image processing program, Gemini 2.5 Flash, developed by Google Deepmind. This program is now integrated into the Gemini application and website, making it accessible to all users. The model, initially tested under the codename "Nano Banana," has been officially named Gemini 2.5 Flash. This development poses a significant threat to existing image processing programs, particularly those under Adobe's portfolio, such as Photoshop.

Google has been testing the new model on the LMArena platform, a public website dedicated to collecting anonymous feedback on AI model quality. Although the testing phase was conducted under the name "Nano Banana," users quickly identified Google as the developer behind the model. According to Google, the core advantage of Gemini 2.5 Flash lies in its ability to maintain consistent features of people or animals across different images. Based on existing feedback, Google claims that user preference for the new model has surpassed that of OpenAI and other competitors, as measured by the Elo rating system, which evaluates the relative performance of generative models.

In response to Google's announcement, Adobe has swiftly taken action. On the same day, Adobe declared that it would immediately integrate Google's new model into Adobe Firefly and Adobe Express. Addressing the question of why users might choose Adobe tools over Google's direct offerings, Adobe emphasized its advantage in providing a one-stop service for model integration. This strategic move by Adobe aims to retain its user base by leveraging the integration of Google's advanced technology within its own suite of tools.

However, this move has not yet effectively alleviated investor concerns. Adobe's stock has seen a cumulative decline of 35% over the past year, partly due to analysts' worries about the impact of AI on the traditional tools market. The integration of Google's model into Adobe's products is a proactive step to mitigate these concerns, but it remains to be seen whether it will be sufficient to reassure investors and maintain market confidence in Adobe's offerings.