Graphic design platform Canva is acquiring Leonardo.ai, an Australian AI-driven image generation startup, to strengthen its competitive position against Adobe.
While Canva has not revealed the purchase price, the deal involves a mix of cash and stock. The acquisition will enhance Canva’s AI technology, integrating Leonardo.ai’s capabilities into Canva’s design tools.
Leonardo.ai’s 120 employees, including its executive team, will join Canva. The startup will continue to operate independently, focusing on accelerating innovation, supported by Canva’s resources.
Cameron Adams, Canva Co-founder, stated that the acquisition will enable Canva to integrate Leonardo.ai’s video and image generation models into its products. The deal, finalized in about a month, aligns with Canva’s strategy to expand its AI offerings.
The Generative AI in design market, valued at $454.1 million in 2023, is expected to grow to $7.9 billion by 2033, with a 34% annual growth rate.
Canva has been investing heavily in generative AI since December 2022, starting with its Magic Write tool. Notable past acquisitions include Kaleido in 2021 and the $380 million purchase of U.K. design firm Affinity earlier this year.
Leonardo.ai, Canva’s eighth acquisition and second this year, adds to Canva’s portfolio of acquisitions, including stock photo platforms Pixabay and Pexels, and product mockup app Smartmockups.
Founded in 2013, Canva has raised over $560 million, recently achieving a $26 billion valuation. It generates nearly $2 billion in revenue and serves over 180 million monthly users globally.
Leonardo.ai, established in 2022, has attracted over 19 million users and created over one billion images. The company, which has raised $31 million in total, also offers video generation software and has secured funding from investors like Samsung Next.
