The News: Canva has announced its plan to acquire Leonardo AI, an Australian AI platform known for its powerful text-to-image generation capabilities. Used by 19 million users globally, Leonardo AI has gained traction in the AI community, and its acquisition will bolster Canva's product offerings.
The Numbers: While the acquisition price remains undisclosed, Leonardo AI previously raised $47 million in a Series A funding round in December, though its valuation was not made public.
The Context: Canva is preparing for its much-anticipated IPO, expected within the next 18 months. Acquiring Leonardo AI not only brings nearly 20 million users into Canva’s ecosystem but also strengthens its position in the rapidly evolving AI space. Earlier this year, Leonardo AI launched Phoenix, Australia's first AI foundation model, marking a significant milestone in AI development.
This deal follows Canva's other major acquisition of 2024—the UK-based design company Affinity, which was purchased for an estimated $1 billion.
What They Said: Leonardo AI co-founder and CEO, JJ Fiasson, expressed excitement about the acquisition, stating that joining forces with Canva will allow Leonardo AI to scale AI research globally and accelerate innovation. Canva's chief product officer, Cameron Adams, hailed the acquisition as a significant collaboration between two Australian tech companies that will push the boundaries of AI-driven creativity.
Conclusion: This acquisition is a strategic move for Canva as it prepares for its IPO, positioning the company at the forefront of AI and design technology. By integrating Leonardo AI's cutting-edge solutions, Canva is set to deliver even more innovative features to its global creative community.