Canva Enhances Its Generative AI Capabilities with the Acquisition of Leonardo.ai

Canva has announced the acquisition of Leonardo.ai, a startup focused on generative AI content creation and research, signaling a further commitment to enhancing its AI technology stack.

While the exact financial details of the acquisition have not been made public, Canva’s co-founder and Chief Product Officer, Cameron Adams, mentioned that the deal includes both cash and stock components. The entire team at Leonardo.ai, counting 120 employees along with its executive board, will be transitioning to Canva.

“Leonardo will operate autonomously within Canva, concentrating on swift innovation along with research and development, supported by the resources Canva offers,” Adams conveyed to TechCrunch. “We intend to maintain Leonardo’s current offerings while also focusing on expanding its platform and user base through our investment. This includes broadening their API offerings and dedicating funds towards research and development of foundational models.”

Initially founded in 2022 with a primary focus on videogame asset creation in Sydney, Leonardo.ai soon broadened its horizons to cater to various sectors by developing and training AI models for image generation applicable in fields like fashion, advertising, and architecture.

Leonardo.ai currently provides collaborative tools, a private cloud for model training including video generation, and API access, enabling customers to construct their technological frameworks atop the Leonardo.ai platform.

Leonardo.ai sets itself apart in the generative AI domain by offering unparalleled user control, as detailed by co-founders Jachin Bhasme, J.J. Fiasson, and Chris Gillis in an interview with TechCrunch. The platform’s Live Canvas feature, for instance, allows users to input text commands and sketches, creating photorealistic images in real-time based on these inputs.

The methodology behind Leonardo.ai’s in-house generative models, such as the Phoenix model, remains less transparent, especially concerning legal concerns about using copyrighted material without authorization. Efforts to gain clarity are ongoing, and updates will be provided as new information becomes available.

Canva has shown notable support towards creators in the incorporation of generative AI technology, pledging $200 million over the next few years to compensate creators whose work assists in training Canva’s AI models.

Expansive Growth

Leonardo.ai boasts over 19 million registered users, with its tools having facilitated the creation of over a billion images.

Adams notes that Leonardo.ai, having secured over $38.8 million in funding from investors including Smash Capital and Samsung Next before its acquisition, is poised to significantly bolster Canva’s Magic Studio generative AI suite.

“We are excited to integrate Leonardo’s technologies into Magic Studio, potentially enhancing existing tools or introducing new AI-powered features directly within Canva,” Adams remarked. “Though it’s still early days, we are eager to explore the synergy of our teams to broaden the AI capabilities available to Canva users.”

Since December 2022, Canva has actively expanded its generative AI toolset, highlighted by the acquisition of Kaleido in February 2021, which greatly influenced Canva’s generative AI endeavors.

Marking Canva’s eighth acquisition, Leonardo.ai’s integration signifies a notable step towards enriching its comprehensive visual AI offerings. This move aligns with Canva’s ambition to foster an AI-driven workflow that simplifies image and design generation for a diversified user base.