Canva Acquires AI Startup Leonardo.AI

Canva, a prominent Australian privately owned technology company known for its graphic design platform, has recently made headlines with the acquisition of Leonardo.ai, a startup specializing in gener...

RTT Staff Writer•Tuesday, July 30, 2024•2 min read

Canva, a prominent Australian privately owned technology company known for its graphic design platform, has recently made headlines with the acquisition of Leonardo.ai, a startup specializing in generative AI content and research.

The acquisition is aimed at bolstering Canva’s AI technology offerings, although specific financial details of the purchase have not been disclosed. It has been revealed, however, that the deal involves a combination of cash and stock.

The acquisition will see all 120 employees of Leonardo.ai, including its executive team, joining Canva. Leonardo.ai is renowned for its collaborative tools and private cloud models, which include advanced video generation capabilities. Additionally, its APIs enable users to construct their technology infrastructure on the platform.

Canva plans to swiftly integrate Leonardo.ai’s technology and its Phoenix foundational model into its existing Magic Studio products, such as the Magic Media image and video generator. This move is expected to enhance Canva’s offerings and drive innovation in AI-generated content.

The acquisition also opens doors for Canva to tap into Leonardo.ai’s extensive user base, which comprises over 19 million registered users from diverse fields including advertising, marketing, and design. This strategic acquisition is poised to propel both companies to new heights, combining their strengths to deliver innovative solutions and services to their users.

Cameron Adams, Canva’s co-founder and chief product officer, highlighted the company’s commitment to supporting Leonardo.ai’s independent operations, emphasizing a focus on rapid innovation, research and development. This backing by Canva’s resources is expected to fuel the growth of Leonardo.ai’s platform and user base.

This acquisition represents Canva’s eighth overall and its second this year, following its recent purchase of U.K.-based design company Affinity for approximately $380 million. Notably, Canva’s diverse portfolio also includes the likes of the presentation startup Zeetings and popular free stock photo websites Pixabay and Pexels, as well as the Czech product mockup application Smartmockups.