Canva acquires Leonardo.AI to boost design AI capabilities

Canva, a world leader in visual communication, announced the acquisition of Leonardo.AI, a leading Australian generative AI content and research company. The financial terms of the deal weren’t disclosed. This strategic move positions Canva to become a one-stop shop for AI-powered creative solutions.

Canva’s AI ambitions 

Since its launch in 2013, Canva has skyrocketed in popularity as a user-friendly design platform. The company boats over 190 million active users today.

Recognizing the potential of AI, Canva began investing in generative tools in December 2022, starting with the copywriting assistant Magic Write. Leonardo.ai is its eighth acquisition overall and second acquisition this year, coming three months after it bought U.K. design company Affinity for an estimated $380 million. 

With Leonardo.ai, Canva aims to become the undisputed leader in AI-powered visual creation. Its existing suite of AI tools, “Magic Studio,” has already garnered over 7 billion uses since its launch in 2023. 

“We’re thrilled to welcome Leonardo.AI to Canva – two Australian companies joining forces to bring world-first breakthroughs in AI and creativity,” said Cameron Adams, co-founder and Chief Product Officer of Canva in a press release. “This field is constantly evolving, and Leonardo’s technical leadership and community impact can’t be overstated. Bringing our worlds together will accelerate each of our teams’ work, taking us from strength to strength, and we can’t wait to get started.”

Leonardo’s Phoenix: Creator control redefined

Founded in 2022, Leonardo.AI initially focused on video game asset creation. Today, they offer a broader range of solutions, including collaboration tools, a private cloud for video generators, and APIs for building custom tech on their platform. Their 19 million users span across various industries, including advertising, marketing, design, and education.

The Phoenix foundational model grants creators unprecedented control over their projects, adhering to specific prompts, generating clear in-image text, and producing production-ready assets in a single go.

“Today marks the start of a new chapter which will accelerate the pace we innovate at Leonardo.Ai,” said JJ Fiasson, Founder and CEO, Leonardo.AI. Joining the Canva family means we can invest more deeply in scaling our AI research efforts globally, and move even faster to deliver new features and functionality to creatives worldwide.”

The future of visual communication

This acquisition signals a major shift towards a more efficient and creative design landscape. Canva’s user-friendly interface combined with Leonardo.AI’s cutting-edge AI will empower users of all levels to turn ideas into impressive visuals. This aligns perfectly with Canva’s Visual Economy Report, highlighting the growing demand for effective and efficient visual communication. AI is becoming an indispensable tool, boosting productivity and creativity across various industries, from marketing teams generating targeted ad creatives to designers producing initial drafts.