Canva has acquired the generative AI startup Leonardo.ai to bolster its AI technology stack and enhance its offerings for a global user base of 190 million.

The integration will leverage Leonardo.ai's foundational model, Phoenix, to improve Canva's existing products and streamline workflows for professional designers.

As part of the acquisition, Canva will provide Leonardo.ai with resources to accelerate its research and development, while Leonardo will continue to operate independently.

This acquisition is Canva's second this year, following its purchase of the Affinity suite of software, and took about a month to finalize.

While the financial terms of the acquisition have not been disclosed, it is seen as a strategic move to strengthen Canva's competitive position against major players like Adobe, Microsoft, and Google.

The acquisition aims to build a comprehensive suite of visual AI tools that will reshape how designers approach their work, aligning with Canva's vision of democratizing creativity.

The growing importance of AI in creative software is underscored by this acquisition, as AI tools are increasingly enhancing productivity and creativity in the industry.

New potential features from this partnership include advanced image and video generation tools, as well as enhanced customization options for users.

Canva has been enhancing its AI capabilities to compete with other generative AI startups, including Midjourney and Stability AI.

Leonardo.ai's platform offers collaboration tools, a private cloud for models, video generators, and APIs, which will complement Canva's existing offerings.

Canva provides indemnification for its enterprise clients, protecting them from copyright-related issues that may arise from image outputs.

Cameron Adams, Canva's co-founder, expressed enthusiasm for the collaboration, emphasizing the potential for innovation in AI and creativity.