Canva acquires Leonardo.ai, a startup focused on artificial intelligence. The deal will allow Canva to integrate the company's generation models into its own products. This was reported by Bloomberg.
The Leonardo.ai team consists of 120 specialists. The company is working on software that helps users create and edit images online with the help of text prompts.
For Canva, this is the second such deal in a year that it has made in an effort to compete with Adobe. The first deal became known in March 2024, when Canva announced the acquisition of Affinity, a developer of a set of programs for professional design.
So with the new deal, Leonardo.ai's services will join Canva's growing suite of AI tools that it hopes will lure some of Adobe's biggest enterprise customers and accelerate revenue growth.
Canva has become a competitor to Adobe, which has long been the dominant software provider for design professionals.
Adobe has recently added artificial intelligence features to its products, but its shares have fallen by more than 10% this year after the deal to acquire Figma for $20 billion fell through in December 2023.