Canva Acquires Leonardo.ai to Bolster Generative AI Capabilities
Canva, the Australian design platform, has announced its acquisition of Leonardo.ai, a generative AI startup specializing in image and video creation. This move marks Canva’s second major acquisition in 2024, following the purchase of Affinity earlier this year, as the company aims to strengthen its position in the competitive creative software market dominated by Adobe.
Founded in 2022, Leonardo.ai has quickly gained traction in the AI-generated content space, amassing 19 million users who have collectively created over a billion images. The startup’s technology, including its proprietary Phoenix foundation model, will be integrated into Canva’s existing suite of AI tools, known as Magic Studio.
Cameron Adams, Canva’s co-founder and Chief Product Officer, emphasized the strategic importance of the acquisition, stating, “Generative AI can’t be a one-trick pony. We’re entering a whole new world of being able to change and adapt the output generative AI is giving you.”
While financial terms were not disclosed, Canva confirmed that all 120 Leonardo.ai employees, including the executive team, will join the company. Leonardo.ai will continue to operate as an independent platform, maintaining its current offerings and pricing structure while benefiting from Canva’s resources and expertise.
The integration of Leonardo.ai’s technology is expected to enhance Canva’s AI-powered features, potentially offering users more advanced tools for image and video generation, as well as fine-tuned control over creative outputs. This move could position Canva more competitively against Adobe’s Firefly generative AI models and other players in the space.
Canva, which recently raised funds at a $26 billion valuation, has been actively expanding its AI capabilities. The company’s Magic Studio suite of AI tools has already been used over 7 billion times, demonstrating the growing demand for AI-assisted creative tools.
