Canva, the renowned graphic design company, has announced the acquisition of Leonardo.ai, an Australian AI-driven image generation startup, in a strategic move to strengthen its competitive position against Adobe. The acquisition deal, which includes both cash and stock, aims to enhance Canva's AI technology stack by integrating Leonardo.ai’s advanced image and video generation models into Canva's suite of products.
Leonardo.ai, founded in 2022, has gained significant traction with over 19 million users creating more than one billion images using its open-source models. The company's 120 employees, including its executive team, will join Canva, although Leonardo.ai will continue to operate independently, focusing on innovation and development with the support of Canva’s resources.
Cameron Adams, Co-founder of Canva, highlighted that this acquisition allows Canva to integrate Leonardo.ai's technology into its AI products, enabling customers to create sophisticated visuals like presentation slides. The deal, finalized within a month, is part of Canva’s broader strategy to expand its generative AI capabilities, a market projected to grow from $454.1 million in 2023 to $7,879.5 million by 2033.
Since December 2022, Canva has been investing heavily in generative AI tools, beginning with its Magic Write copywriting assistant and through various strategic acquisitions. Notable acquisitions include Kaleido for background removal services and the $380 million acquisition of Affinity. Canva’s portfolio also includes Zeetings, Pixabay, Pexels, and Smartmockups.
Launched in 2013, Canva has raised over $560 million and recently achieved a valuation of $26 billion, generating nearly $2 billion in revenue with over 180 million monthly users globally. Leonardo.ai, which raised $31 million from investors, offers collaboration tools, a private cloud, and APIs, providing a robust platform for technological infrastructure development.
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