Canva has announced its acquisition of Leonardo.Ai, an Australian generative AI platform, marking its second acquisition of 2024.
The move, according to Canva, aims to enhance Canva’s suite of visual communication tools and solidify its position in the evolving AI-driven design market.
The deal, reportedly valued at over $120 million, will see all employees of Leonardo, including its executive team, join Canva while allowing the startup to operate independently.
Founded in late 2022, Leonardo.Ai has quickly gained traction, amassing over 19 million registered users and generating more than one billion images in just 18 months. Its technology enables users to create high-quality images and videos from simple prompts, making it a valuable addition to Canva’s generative AI efforts.
In a press release, Cameron Adams, Canva’s co-founder and chief product officer, expressed enthusiasm about the acquisition, emphasizing the synergy between the two companies. He noted that both organizations are committed to pushing the boundaries of creativity and innovation in the AI space, which is crucial as the demand for AI-driven design tools continues to surge. The global market for generative AI in design is projected to grow from $412.06 million in 2022 to nearly $7.8 billion by 2032, highlighting the potential for significant advancements in this field.
This acquisition follows Canva’s earlier purchase of the UK-based design company Affinity for $380 million earlier this year. Since 2021, Canva has strategically acquired several generative AI companies, including Kaleido, Flourish, and Pexels, to boost its capabilities and expand its user base. These acquisitions reflect Canva’s ongoing commitment to enhancing its platform amid growing competition with Adobe.
With Canva eyeing an IPO next year or in early 2026, it has continued to show backers its strong financial performance and growth potential. Adding Leonardo.Ai to its stack may yet be another step towards flexing its readiness to go public.