Canva unveils world-first AI model as it gears for blockbuster listing
Loading
“We all want to create workhorses, not gimmicks,” he said during a product launch. “AI is only getting faster [our mission] massively making it faster, quicker and better for customers to achieve their goals.
“We knew that if we could figure out this madness, that would be a huge advantage for us. That’s where we needed to be, and that’s where we could compete because we had the data, all the templates and the capabilities.”
Since Magic Studio launched its AI tools in 2023, Canva users have used its AI features more than 20 billion times, making Canva one of the fastest-growing AI platforms globally, Obrecht said. AI tools saved marketers an average of four hours per week. More importantly for investors, they are converting free users into paid subscribers, with average contract values rising 66 percent in 2025.
The Creator OS launch delivers major upgrades to Canva’s Visual Suite, including Video 2.0, a redesigned video editor built from the ground up where users can create polished video content with a single prompt. One of Canva’s most requested products, Email Design allows teams to create, customize and export fully branded marketing emails as HTML files without the need to code.
Canva also announced that Affinity, its professional design tool suite for desktop designers, will be free forever. The move directly challenges Adobe’s dominance of professional creative software for which users typically pay $500 or more a year.
“This is us really disrupting the professional design market,” Obrecht said. “Why are professional designers missing our mission of empowering the world with design?”
Canva co-founders Cliff Obrecht and Melanie Perkins are pictured with co-founder Cameron Adams.Credit: Canvas
The company is also launching Canva Grow, an end-to-end marketing platform that brings creation, publishing, and performance tracking together in one place. Marketing teams can now design and run ads on platforms like Meta, track information in real-time, and refine content based on performance metrics.
“We really expect this to be a multibillion-dollar business within five years,” Obrecht said of Canva Grow, noting that the company is “trying to invest a lot more in less” to maximize impact on the platform.
Kelly Steckelberg, Canva’s chief financial officer.Credit: Kelly Steckelberg
Canva hired Kelly Steckelberg, who helped take Zoom public in 2019, as chief financial officer in November 2024; This is a widely seen sign that the company is preparing for its market debut. Obrecht confirmed the IPO would “probably” take place on Nasdaq rather than the Australian Securities Exchange, following the path of Australian tech giant Atlassian.
“Our last secondary education [funding round] Larger than most recent IPOs, Obrecht noted, “From an investor perspective, we have all the best investors investing through IPOs, and they have been our investors for the last several years.”
Industry analysts suggest that Canva could achieve valuations between US$40 billion and US$200 billion in its IPO, depending on market conditions and the revenue multiple determined by investors.
Despite all this momentum, questions still remain. The company claims eight years of profitability, but Australian corporate records show statutory losses of US$222 million in 2022. Canva says it’s “cash flow positive” using its own metrics, a kind of accounting gymnastics that invites IPO scrutiny. Competition is also intensifying: Figma’s recent Config 2025 launch introduced Buzz, a marketing tool aimed directly at Canva’s core market; Adobe’s Firefly AI, meanwhile, generated $250 million in revenue in the quarter that ended in August, proving that the incumbent can still innovate.
Despite ambitious growth plans, Canva has significantly slowed headcount growth, with its workforce growing to around 5,500 people (a slowdown from previous years). “This is a byproduct of us being much more efficient and empowering employees with AI to do more,” Obrecht said.
With its Creative Operating System, core design model, and expanding suite of AI-powered tools, Canva positions itself not just as a design platform, but as the operating system for modern creative work.
This is a bold repositioning that could justify premium valuations on Canva’s public market debut.
“We truly believe we are only 1 percent of the way there,” Obrecht said. “The best is yet to come.”
The Business Briefing newsletter delivers big stories, exclusive news and expert insights. Sign up to receive it every weekday morning.
