Canva has acquired Leonardo.ai, a generative AI content and research startup, as the company looks to boost generative AI. The deal, finalized on July 29, 2024, marks Canva’s eighth acquisition overall and its second this year.
While financial terms were not disclosed, Canva’s co-founder and chief product officer Cameron Adams revealed that the acquisition involves a mix of cash and stock. All 120 employees of Leonardo.ai, including the executive team, will be joining Canva as part of the agreement. How to add a color overlay to images in canva
Founded in 2022, Sydney-based Leonardo.ai initially focused on video game asset creation but expanded its platform to serve industries such as fashion, advertising, and architecture. The startup has garnered over 19 million registered users and has been used to create more than a billion images since its inception.
Leonardo.ai’s technology will be integrated into Canva’s Magic Studio generative AI suite, potentially enhancing existing tools and introducing new capabilities. Adams expressed excitement about the acquisition, stating, “It’s a significant but natural next step in our efforts to build the most powerful, all-in-one visual AI offering.”
The move comes as Canva, founded in 2012, eyes a potential IPO. The company has been investing heavily in generative AI tools since December 2022, starting with the copywriting assistant Magic Write. Canva boasts over 180 million monthly users worldwide and is reportedly generating close to $2 billion in revenue.
This acquisition highlights the growing importance of AI in the design and content creation space, as well as the competitive landscape among tech companies vying for dominance in this rapidly evolving field. As Canva continues to expand its AI capabilities, it aims to solidify its position as a leader in the visual communication platform market.
The deal also underscores the increasing trend of larger tech companies acquiring AI startups to enhance their offerings and stay ahead in the AI race. As the integration of Leonardo.ai’s technology progresses, users can expect to see new and improved AI-powered features within the Canva platform in the coming months.
