- Canva has acquired Leonardo.ai, a generative AI content and research startup, to deepen its investments in AI technology and expand its generative AI suite.
- The acquisition will allow Canva to integrate Leonardo.ai’s technology into its Magic Studio, enhancing AI capabilities for its users.
OUR TAKE
Canva has announced the acquisition of Leonardo.ai, a generative AI content and research startup, to bolster its AI technology stack. The financial terms of the acquisition were not disclosed, but it involves a combination of cash and stock. Leonardo.ai’s entire team, including its executive members, will be integrated into Canva, which plans to leverage Leonardo.ai’s technology to enhance its Magic Studio suite. This strategic move comes as Canva continues to invest heavily in AI, aiming to provide more advanced tools for its users and further expand its market presence.
-Rae Li, BTW reporter
What happened
Canva, a leading graphic design platform, has completed the acquisition of Leonardo.ai, a startup specialising in generative AI content and research. The financial terms of the deal are not disclosed, but it is known to be a combination of cash and stock. Leonardo.ai, founded in 2022 and based in Sydney, initially focused on creating video game assets but later expanded its platform to cater to a broader range of industries, including fashion, advertising, and architecture. The acquisition will see Leonardo.ai operate independently under Canva’s umbrella, with a continued emphasis on rapid innovation and development, now supported by Canva’s resources.
The integration of Leonardo.ai’s technology into Canva’s Magic Studio is expected to significantly enhance the platform’s AI capabilities. Leonardo.ai’s tools, which include collaboration features and a private cloud for models, as well as APIs for custom tech infrastructure development, will be leveraged to enrich Canva’s offerings. The startup’s flagship model, Phoenix, and other generative models will be part of this integration, potentially offering new features such as the Live Canvas, which allows users to create photorealistic images based on text and sketch prompts in real-time. Canva’s commitment to AI is further evidenced by its $200 million investment to pay creators for content used to train its AI models, indicating a strong push towards AI-driven design solutions.
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Why it’s important
By acquiring Leonardo.ai, Canva not only strengthens its AI technology stack, but also gains access to new tools and expertise that will help boost its platform’s innovation and competitiveness in the marketplace. This acquisition demonstrates Canva’s long-term commitment and investment in AI technology, signalling that more AI-driven features may be added to Canva’s products in the future.
At the same time, Canva’s investments and acquisitions in AI technology demonstrate its focus on protecting the rights of creators, and by paying creators to train AI models using their content, Canva is building a more equitable and sustainable creative ecosystem.
