Canva acquires generative AI startup Leonardo.ai to catch up with Adobe Firefly

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Canva, the $26B design technology behemoth, has announced the acquisition of Leonardo.ai, an innovative generative AI content and research startup. This strategic acquisition is set to bolster Canva’s AI tech stack, marking a new chapter in the company’s journey towards becoming a leader in the realm of visual AI.

 

Although the financial terms of the deal were not publicly disclosed, it’s known that the agreement involves a combination of cash and stock. All 120 Leonardo's employees, including the executive team, will be joining Canva, bringing their expertise to further enhance Canva’s AI capabilities.

 

 

Leonardo.ai, founded in 2022, has reportedly generated more than one billion images in the last 18 months. Reputed as one of "Australia’s fastest-growing startups", its products are used by more than 19 million people, just two years after launching. 

 

Canva’s acquisition of Leonardo.ai, seen by the industry as a head-on challenge to Adobe's Firefly, is not just about expanding its user base or product offerings. It’s also about investing in foundational model research and development. This acquisition will allow Canva to integrate Leonardo’s leading technology and their Phoenix foundational model into Canva’s existing suite of Magic Studio products.

 

 

Leonardo.ai is Canva’s 8th acquisition—following Affinity, Flourish, Kaleido, Smartmockups, Pexels, Pixabay, and Zeetings.

 

 

 

Read more:

• https://www.canva.com/newsroom/news/leonardo-ai/
• https://www.businesswire.com/news/home/20240729977410/en/Canva-to-Acquire-Generative-AI-Platform-Leonardo.AI-to-Bring-Leading-Visual-AI-to-Every-Organization
• https://techcrunch.com/2024/07/29/canva-acquires-leonardo-ai-to-boost-its-generative-ai-efforts/
• https://www.businessnewsaustralia.com/articles/canva-swoops-on-australia-s-fastest-growing-startup-leonardo-ai.html
• https://techpoint.africa/2024/07/30/canva-acquires-leonardo-ai/

 

Image: Canva / Businesswire