Graphic design firm Canva has strategically acquired Leonardo.Ai, a burgeoning generative AI platform. This acquisition aims to amplify Canva’s AI offerings in preparation for an expected IPO in 2025.
Move to Enhance AI Offerings
Leonardo.Ai, launched in December 2022, rapidly grew to attract over 19 million users and created its own foundational AI model, Phoenix. The company was in the midst of securing series B funding when the acquisition talks became serious. Details on the financial aspects of the deal remain undisclosed.
Previously, Leonardo.Ai secured $47 million in series A funding with backing from investors like Blackbird Ventures, Side Stage Ventures, Smash Capital, and Samsung Next. The startup has positioned itself as a competitor in the generative AI sector, alongside firms such as Midjourney and OpenAI’s Dall-E.
Founders’ Meeting Fuels Acquisition
The groundwork for this acquisition was laid when Canva’s co-founder, Cliff Obrecht, met with Leonardo.Ai’s co-founder and CEO, JJ Fiasson. Introduced by their mutual investor Blackbird Ventures, the two discussed potential collaboration. Discussions accelerated following Leonardo.Ai’s launch of its foundational model, Phoenix.
Integrating Leonardo.Ai’s technology is expected to enhance Canva’s AI capabilities considerably, strengthening Canva’s market position ahead of its IPO. Buying Leonardo.Ai allows Canva to implement advanced AI-driven features, reinforcing its status within the competitive tech sector.
The acquisition underscores the importance of AI in driving growth and innovation, marking a key moment for Canva and the broader Australian tech industry as the company gears up for its public debut.
Canva Targeting AI Growth
With a growth in AI image and art tools, including Microsoft’s Bing Image Creator, Canva has needed to embrace AI. Last year, the company launched its Magic Studio update to integrate AI solutions into its platform.
Canva’s newly introduced Magic Media function allows users to transform text or static images into dynamic, 18-second videos through its integration with Runway software. The innovative application of AI signifies a pivotal advancement in design accessibility, democratizing professional-grade video creation for individuals without formal design expertise. Canva positions AI as a strategic tool to equip the broader workforce with design capabilities.
Last Updated on November 7, 2024 3:28 pm CET
