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Canva Acquires Leonardo.AI to Enhance Generative AI Capabilities

Canva, the popular graphic design platform, is making headlines with its latest acquisition of generative AI startup Leonardo. AI. This strategic move underscores Canva’s commitment to becoming the ultimate all-in-one creative hub for businesses and individual users.

A Strategic Move in AI Innovation

Canva, headquartered in Australia, has acquired Leonardo.AI, a dynamic generative AI and research startup. Founded less than two years ago, Leonardo.AI has swiftly gained traction, amassing 19 million registered users. The startup is renowned for its image- and video-generating tools, which have found favor among professionals in advertising, marketing, and e-commerce.

The terms have not been disclosed, but it is understood to surpass Leonardo AI’s last funding round valuation of $80 million. The acquisition may face scrutiny from the Australian Competition and Consumer Commission, according to The Australian Financial Review.

Enhancing Creative Tools with AI

Leonardo.AI, founded in 2022, has made waves with its innovative platform that allows users to create high-quality visual assets rapidly. Its latest model, Phoenix, promises exceptional prompt understanding and execution. The platform enables users to generate images and videos in various styles, from photorealism to artistic themes, simply by entering prompts or sketching images.

Canvas Expansion Journey

Canva has acquired Leonardo, an AI tool, as part of a strategy to improve its creative tools. Canva has previously acquired Affinity, a specialized image editing tool, and Flourish, a data visualization platform. The acquisition is part of a larger strategy to strengthen its teams and move forward with Canvas.

AI’s Role in Modern Creativity

Canva, a popular visual design tool, has acquired Magic Studio AI tools and work kits to cater to the growing trend of in-house creative production. With over 190 million active users and 16 million paying subscribers, the Canva tool is used by 95% of Fortune 500 companies. The acquisition aims to strengthen its position as a leading destination for professional visuals.

A Competitive Landscape

Canva’s acquisition comes as it faces competition from Adobe’s enterprise solutions and TikTok’s native tools like CapCut. ByteDance, the parent company of TikTok, is making significant investments in artificial intelligence to improve its ad and user experience technologies.

Looking Ahead

It’s unclear how Leonardo’s AI’s generative AI technology will be integrated with Canvas Magic Studio and other tools. However, Leonardo. AI’s capabilities are expected to make it easier for large teams of non-specialized users to collaborate and create high-quality visual content more quickly.

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