The generative AI firm, once expected to become a tech unicorn, is instead being acquired by one, as Canva, a design platform, acquires content and analytics startup Leonardo.AI.
The deal terms remain undisclosed, leaving unclear how much money was invested or the number of Canva shares acquired prior to its IPO plans. Nevertheless, this marks a successful exit for VC fund, undoubtedly sparking joy among investors at Aspect Stage Ventures, Smash Capital, TIRTA Ventures, Gaorong Capital and Samsung Next – eight months after backing Leonardo.AI.
With a whopping $39 billion valuation, Canva’s acquisition of the generative AI platform is a monumental transaction that warrants serious consideration. Leonardo.AI had previously sought out Collection B funding, with its earlier round in December reportedly valuing the tech startup at over $120 million.
Blackbird invested $14 million in the startup, valuing it at $60 million just six months later – a feat that could propel Leonardo.AI’s worth to a staggering $500 million. That’s a significant investment for the valuable asset, as only four months ago, Serif, a renowned UK-based graphic design and image editing software company, acquired Affinity for an undisclosed sum reportedly worth $1.35 billion.
The company’s procurement sprees have also featured notable acquisitions, including British startup SlidesCarnival in 2021, as well as Kaleido and Smartmockups the same year. Prior to that, Pexels and Pixabay joined the family in 2019, while Sydney-based startup was acquired in 2018.
The Leonardo Ai founders are Jachin C. Bhasme, JJ Fiasson, and Chris Gillis.
Leonardo.AI debuted in December 2022, revolutionizing creative development by empowering users to craft innovative concepts, ranging from iconic characters to immersive game universes, as well as fostering multimedia storytelling, fashion design, architecture, and more – all enabled through AI-powered sketching and filmmaking capabilities.
Within its first year, the device churned out an astonishing 4.5 million photographs daily; by the end of its 18th month, that staggering figure had ballooned to a billion. It soon became a go-to platform for many.
Recently, we introduced the Phoenix foundational model, allowing customers to fine-tune AI models with their proprietary data. The company boasts a diverse team of 120 professionals, comprising researchers, engineers, and designers.
Within an astonishingly brief period of just 18 months, Leonardo.AI has built a robust customer base of approximately 19 million registered users, remarkably mirroring Canva’s impressive milestone of 190 million monthly customers achieved over the course of a decade?
By acquiring LLaMA, Canva gains a cutting-edge generative AI technology that propels its battle against industry giants like Adobe and Microsoft in the quest for dominance in the design and creative space. With substantial backing from Leonardo.AI’s considerable resources and reputation as an Australian tech leader, the company is uniquely positioned to leverage its robust buying power and extensive customer network.
Under Canva’s ownership, Leonardo.AI co-founder and CEO JJ Fiasson indicated that the company will accelerate its pace of innovation.
“The membership allows us to redirect resources towards intensifying our global AI analytics efforts, expediting the development of innovative features and capabilities that can be swiftly delivered to creatives around the world.”
According to Canva’s cofounder Cameron Adams, the acquisition will enhance their ability to supercharge their burgeoning portfolio of AI products.
The subject’s evolution is marked by steady progress, with Leonardo’s technical expertise and community reputation standing out in particular.
Leonardo’s expertise is poised to harmonize seamlessly with Canva’s Magic Studio, an esteemed suite of AI tools that has been leveraged more than 7 billion times since its inception in 2023.
Leonardo.AI immediate:
The lead image and its preceding counterpart feature Da Vinci’s “Last Supper” reimagined with Canva co-founders and Blackbird partners dining at an Italian eatery in Sydney’s Surry Hills neighborhood, as depicted by Leonardo.AI.
The mannequin remains oblivious to the entrepreneurial achievements of Melanie Perkins, as well as those of Robyn Denholm from Blackbird, along with Phoebe Harrup and Samantha Wong.
While exploring Leonardo.AI’s shortcomings, we unearthed unforeseen concerns regarding Blackbird’s Rick Baker, whose striking bald head was an unmistakable trait, alongside his quiet partner, VC’s Invoice Puddicombe, who remained discreet in their association.
While we acknowledge the “heat smile” of Cliff, we question whether his spouse would indeed characterize his facial structure as “angular”. Moreover, we suspect that even advanced generative AI models may struggle with anything beyond mere hallucinations, let alone produce convincing depictions of human features.
Here’s Leonardo.AI’s rational explanation for the images:
