Australian design software company Canva has launched a new artificial intelligence image generation tool following an emergency overhaul of its AI strategy, positioning itself directly against major tech competitors like Google and OpenAI.
Overcoming Cost Hurdles and Previous Delays
The newly unveiled tool follows Canva's decision in August to halt the release of heavily promoted AI features. The temporary pause was necessary to address high token costs that threatened the company's financial viability if opened up to customers. Alongside the technological pivot, Canva previously issued a rare revenue downgrade as major investors reduced the company's valuation by $10 billion, bringing it down to $50 billion.
Despite these financial setbacks, Canva reports that internal testing indicates its new image generator outperforms Google's equivalent technology while ranking just behind OpenAI.
