Adobe Research and Hong Kong University of Science and Technology have developed TransPixar, an AI system that creates transparent visual effects for videos. As reported by Michael Nuñez in VentureBeat, the technology generates see-through elements like smoke and reflections that blend naturally into scenes. The system works with limited training data and uses a novel approach to extend existing video AI models. Project leader Yijun Li emphasizes that alpha channels are crucial for visual effects but have been challenging to generate with AI. TransPixar processes text prompts to create various effects, from storm clouds to magical portals. The code is now publicly available on GitHub with a demo on Hugging Face. This advancement could particularly benefit smaller studios by making visual effects production faster and more affordable.