Canva's Game-Changing Move: Acquiring Leonardo.ai to Elevate AI Innovation

Canva's Game-Changing Move: Acquiring Leonardo.ai to Elevate AI Innovation

Canva has made a groundbreaking acquisition by purchasing Leonardo.ai, a startup specializing in generative AI content and research. This strategic move is set to significantly enhance Canva's AI capabilities and tech stack. While the financial details remain undisclosed, Canva's co-founder and chief product officer Cameron Adams revealed that the deal includes a mix of cash and stock. The acquisition brings all 120 employees of Leonardo.ai, including its executive team, into the Canva family.

Leonardo.ai will continue to operate independently, with a focus on rapid innovation, research, and development, now supported by Canva's extensive resources. Adams emphasized that the startup's existing tools and solutions will remain available, with plans to further develop their platform, grow their user base, and expand their API business.

Founded in 2022 and based in Sydney, Leonardo.ai initially aimed to create video game assets but soon expanded its scope to include AI models for image creation in various industries, such as fashion, advertising, and architecture. The platform offers collaboration tools, a private cloud for models, and APIs that allow customers to build their own tech infrastructure.

One of Leonardo.ai's standout features is the Live Canvas, which lets users input text prompts and make quick sketches to create photorealistic images in real time. However, the specifics of how the company trains its AI models, including its flagship model Phoenix, remain unclear. The company claims its models are trained on "licensed, synthetic, and publicly available/open-source data."

Canva, committed to supporting creators, has pledged $200 million to compensate those who allow their content to train its AI models. The acquisition of Leonardo.ai is a game changer for Canva, aligning with its strategy to bolster its Magic Studio generative AI suite, offering users more advanced tools and capabilities.

With over 19 million registered users and more than a billion images created, Leonardo.ai adds significant value to Canva's portfolio. The acquisition marks Canva's eighth and second of the year, following the purchase of U.K. design company Affinity. Canva continues to innovate and expand, positioning itself as a leader in AI-powered visual design solutions.

This exciting development will be featured in the Christopher Frazier Newsletter, which covers cutting-edge topics in AI, business, and innovation. Stay tuned for more insights and updates!