Canva expands AI capabilities through acquisition of Leonardo.AI

Canva has announced its acquisition of Australian generative AI startup Leonardo.AI for an undisclosed amount, aiming to bolster its generative AI capabilities. This strategic move positions Canva to better compete with industry giants like Adobe, Microsoft, and Google in the visual content creation sector.

Canva CEO Cameron Adams highlighted the importance of this acquisition, stating, “The generative AI landscape is rapidly evolving, and Leonardo.AI’s expertise and influence in this area are invaluable. By combining our resources, we will enhance our teams' productivity and drive innovation forward.” Adams also mentioned that Leonardo.AI will continue to independently support its current clients, ensuring a seamless transition and continued service excellence. 

This acquisition reflects Canva's commitment to expanding its technological edge and reinforces its competitive stance in the creative tools market.

While the financial details of the acquisition remain undisclosed, the deal brings Leonardo.AI’s team of 120 designers, researchers, and developers into Canva's fold, significantly enhancing its AI capabilities. J.J. Fiasson, founder and CEO of Leonardo.AI, expressed that joining forces with Canva will enable them to intensify their research and development efforts, scale their AI research globally, and accelerate the delivery of innovative features to creatives worldwide.

Founded in 2022 by Fiasson, Jachin Bhasme, and Chris Gillis, Leonardo.AI has rapidly gained prominence in the AI-generated content sector, amassing over 19 million registered users. The platform, known for producing high-quality images and videos, has already contributed to the creation of more than a billion images across various fields, including advertising, design, architecture, and marketing.

This acquisition will allow Canva to integrate Leonardo.AI's advanced tools, such as the Phoenix AI system, into its Magic Studio suite. This integration is expected to significantly enhance Canva's capabilities in AI-powered image and video creation, bolstering its Magic Media feature and reinforcing its position as a leader in the visual content creation industry.

Despite the acquisition, Leonardo.AI will continue to operate independently, maintaining its focus on innovation, model research, and product development. As J.J. Fiasson stated, “We will continue to operate as Leonardo.AI, serving our community and staying true to our creative mission.”

This acquisition represents Canva's eighth since its inception in 2012. Past notable acquisitions include the image editing tool Affinity for an estimated $380 million in March 2024, data visualization platform Flourish in 2022, and Smartmockups and Kaleido.ai in 2021. Canva also owns popular free stock photography platforms Pixabay and Pexels, as well as the presentation startup Zeetings.

With its user base exceeding 180 million globally, Canva’s latest acquisition reinforces its competitive edge in the visual content creation industry. By integrating Leonardo.AI’s advanced AI tools into its portfolio, Canva enhances its capabilities and continues to offer a comprehensive suite of AI-powered features to its extensive user base, further establishing its dominance in the market.