Canva, an Australian design tech company based in Sydney, has recently made headlines with its acquisition of Leonardo.ai, a generative AI content and research startup. The move signifies Canva’s commitment to enhancing its AI technology stack through strategic investments. The details of the deal, which involves a combination of cash and stock, have not been disclosed. Notably, all 120 employees of Leonardo.ai, including the executive team, will be joining Canva in this transition.
Leonardo.ai, originally established in 2022 and rooted in video game asset creation, has evolved to cater to a broader spectrum of industries like fashion, advertising, and architecture. Offering a range of tools, including collaboration features and a private cloud for models, Leonardo.ai is known for its user-friendly interface and extensive customization options for artwork creation through AI models.
The acquisition is expected to fuel further growth and innovation for Leonardo.ai, as Canva plans to integrate its technology into Canva’s Magic Studio generative AI suite. This collaboration aims to empower users with enhanced tools and capabilities, ultimately expanding the creative possibilities within the platform. Canva’s strategic focus on generative AI tools has been evident since 2022, with previous acquisitions like Kaleido setting the groundwork for its AI-powered initiatives.
With over 19 million registered users and a track record of generating over a billion images, Leonardo.ai has positioned itself as a key player in the AI content creation space. By joining forces with Canva, the startup looks to leverage Canva’s resources to amplify its platform’s impact and reach new heights in user growth. The acquisition marks Canva’s second major move this year, following its purchase of U.K. design company Affinity for an estimated $380 million.
Given Canva’s dedication to advancing visual AI offerings, the acquisition of Leonardo.ai represents a pivotal step towards strengthening its position in the design tech industry. By integrating generative AI capabilities and innovative tools, Canva aims to enhance the user experience and unlock new creative potentials for its expansive user base worldwide. The future looks promising as Canva continues to lead the way in AI-driven design solutions.