👉 Background: Canva is the design software company that’s become Australia’s golden child after its almost $40 billion valuation and 180 million monthly active users.

👉 What happened: Canva ain't stopping at giveaway templates and pitch decks because it has now acquired AI startup Leonardo.Ai, an image-generation AI company based in Australia. While Leonardo.ai started in the gaming industry, it has since expanded to other industries like film and architecture.

👉 What else: While the acquisition price is undisclosed, Leonardo.ai raised $47 million last year and has nearly tripled its users since then to over 19 million monthly active users. And now, Canva will get exclusive access to Leonardo.AI’s technology to improve its own set of AI tools.

What's the key learning?

💡If you can’t beat 'em, buy 'em. This acquisition is a strategic way for Canva to level up its own AI game much faster - to the exclusion of all its competitors.

💡This deal gives Canva exclusive access to Leonardo.AI’s AI tech as well as their IP and team of AI experts. Since 2018, acquisitions have been a big part of Canva’s growth. In fact, Leonardo.AI will be Canva’s 8th acquisition.

💡Canva isn't the only tech company to make acquisition-inroads in the AI space. Apple has acquired more than 20 AI companies, while Microsoft and Google have also bought more than AI companies 10 each.