Canva Triples Subscription Prices Citing New AI Design Tools

The design software company, Canva, has announced that it will be increasing some of its subscription prices by 300%. This change is due to the need to cover costs for implementing new AI features.

Canva informed its worldwide clients who use Canva Teams about the increased subscription fees, citing the necessity to increase investment in the software, including the implementation of AI-powered design features.

A number of Canva Teams users in the US are experiencing an increase in their subscription fees, which have gone up from $120 per year for up to five users to a steep $500 per year. However, there is a 40% reduction for the initial year, making it $300.

According to Information Age, the monthly fee for Canva in Australia will change from $39.99 AUD ($26 USD) for five users to $40.50 AUD for one user. This adjustment will result in a significant increase for teams of five, as their annual cost will rise from $480 AUD ($323 USD) to $2,430 AUD ($1,636 USD).

According to Canva’s statement to The Verge, the reason for the price hike is the enhanced product experience and value brought by the addition of generative AI tools to the platform.

Canva price increase is one of the biggest increases I have ever seen YoY. pic.twitter.com/8MOEYMcRm3

— Will Sanders (@wlsndrs) August 30, 2024

“According to Louisa Green, Canva’s communications lead, the company has experienced significant growth in its product offerings in recent years, including the introduction of new products such as the Visual Suite and Magic Studio.”

Canva’s impending public listing in 2026 has coincided with a sharp rise in prices. The company plans to conduct its IPO in the US and was valued at $37.8 billion during its most recent funding round.

Although Canva is incorporating AI technology into their platform, other design software companies such as Procreate have made it clear that they have no intention of following suit. In a video shared on X/Twitter, Procreate CEO James Cuda directly expressed his disdain for generative AI, stating, “I absolutely despise it.”