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Canva has introduced its inaugural image generation model, Canva Craft, developed by its in-house research team to align with similar offerings from industry leaders like Google, OpenAI, ByteDance, and Meta. The company outlined that the Canva Craft model operates in a two-step process. Initially, it interprets user prompts and formulates a detailed plan outlining aspects such as spatial relationships, relative scale, visual hierarchy, and necessary text generation cues. Subsequently, the model creates images with a resolution of up to 2K in 30 different aspect ratios suitable for a variety of platforms.
This dual-stage methodology aims to ensure that generated images feature precise object details and readable text, while allowing users to edit specific areas of an image without affecting other components. Notably, Canva’s training approach for this model used its human-designed templates from a broad array of projects, including posters, social media graphics, presentations, infographics, menus, and layouts rich in typography, rather than relying on photographs.
As a result, images produced with Canva Craft can be transformed into layered designs using Canva Magic, the platform’s tool designed for converting images into designs. This follows the earlier release of a model capable of understanding designs and layers, which debuted last year. Canva Craft is now accessible to all users via the Dream Lab tab on the platform, with further availability through the Canva API and plans to integrate image generation into third-party chatbots like ChatGPT and Gemini through Canva’s MCP.
With multiple image models used previously for generation within its platform, Canva anticipates that the new model will reduce API costs. Additionally, the company highlighted that this innovation offers enhanced quality and speed control. In 2024, Canva expanded its capabilities by acquiring the media generation platform Leonardo.ai, whose researchers contributed to the development of the new image model.
Canva is also in the process of creating two cost-efficient iterations of the model, referred to as Craftfast and Craft-ultrafast, which are expected to launch in the near future. Despite achieving nearly $4 billion in revenue last year, Canva has revised its growth forecast for 2026, resulting in a substantial drop in its valuation, with estimates saying it fell from $42 billion to $35 billion, as reported by external analysts.
