Canva launches first image generation model to compete with major tech firms

Design platform Canva has launched its first image generation model, Canva Craft, developed by its research team to compete with models from Google, OpenAI, ByteDance, and Meta. The model operates in two stages, first interpreting user prompts to create a detailed plan and then generating images up to 2K resolution in 30 different aspect ratios. Canva emphasized that this approach allows for accurate object details and legible text, enabling precise edits without altering other parts of the image. The model was trained using human-designed templates from Canva’s library, including posters, social posts, and infographics. Canva Craft is now available on its platform and via API, with plans to integrate it into third-party chatbots like ChatGPT and Gemini through its MCP. The company also announced two cost-efficient versions, Craftfast and Craft-ultrafast, set for release soon. In 2024, Canva acquired Leonardo.ai, which contributed to the new model. Despite a $4 billion revenue forecast last year, Canva cut its 2026 growth forecast, leading to a reported valuation drop from $42 billion to $35 billion.