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HSBC Downgrades Adobe Stock Due to Threat of Free AI Alternatives

Software engineer Brandon Thomas has released Artcraft, a suite of seven open-source applications built using AI to emulate Adobe’s Creative Cloud software.

HSBC Downgrades Adobe Stock Due to Threat of Free AI Alternatives
HSBC Downgrades Adobe Stock Due to Threat of Free AI Alternatives

Software engineer Brandon Thomas has released Artcraft, a suite of seven open-source applications built using AI to emulate Adobe’s Creative Cloud software.

Artcraft’s AI-Generated Suite

The suite, which is hosted on GitHub, provides users with tools that emulate the appearance of Adobe’s industry-standard applications. The specific lineup includes:

  • Photocraft (Photoshop)
  • Vectorcraft (Illustrator)
  • Filmcraft (Premiere)
  • Lightcraft (Lightroom)
  • Effectcraft (After Effects)
  • Designcraft (InDesign)
  • Printcraft (Acrobat Pro)

Thomas, who operates out of Atlanta, has emphasized that his technical background is significant. He maintains that his expertise extends well beyond simply writing prompts for artificial intelligence.

HSBC Downgrades Adobe Shares Amid AI Competition

The emergence of Artcraft has moved beyond technical forums and into financial analysis. On Tuesday, HSBC downgraded Adobe’s stock rating from “buy” to “hold” and lowered the price target from $310.00 to $267.00. Berrie noted that the discount applied to Adobe shares is justified given the potential for such technological shifts.

HSBC cited the risk that free, AI-generated open-source alternatives could pressure Adobe’s subscription-heavy business model. The bank reduced its revenue estimates by approximately 1% and non-GAAP earnings estimates by 1% to 2% to account for potential user migration to free alternatives. He specifically advised against downloading these programs, noting that open-source code may allow AI to detect and exploit piracy vulnerabilities.

HSBC Downgrades Adobe Stock Due to Threat of Free AI Alternatives
Photo: العربية

Thomas Addresses Early Software Development Hurdles

Despite the ambitious launch, the software remains in early alpha stages. Users have reported functional gaps, and Thomas acknowledged that the tools are not yet ready for professional workflows that require high stability. He has noted that the project is currently a controllable AI tailored for artists that allows for precise post-generation adjustments to images and videos.

Reaching 99% parity will take some time, but I am confident that it will be measured in months, not years, Brandon Thomas said.

Thomas intends to fund the project through a separate commercial venture that sells credits for AI image and video generation models. With each application in the suite measuring under 100 megabytes, Thomas argues that the AI-driven era of software development provides developers with tools to build alternatives to commercial products faster and at a lower cost, effectively challenging the traditional Software as a Service (SaaS) model.

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Technology Editor

Maya Serrano

Maya Serrano is the editorial identity for TellingPointy's Technology desk, covering artificial intelligence, platforms, software, hardware, cybersecurity, and digital policy. Serrano's work translates complex systems without sanding away the important details. Her desk asks who controls a technology, what data and incentives power it, where the real limits sit, and how a product or policy changes the balance among users, companies, governments, and the wider public.