Canva has introduced Canva Craft, its first internally developed AI image generation model, as competition in the creative AI market intensifies. The new tool aims to deliver more accurate images, readable text, and greater editing control within Canva’s design platform.
Unlike tools focused mainly on generating finished images, Craft can convert AI-generated visuals into layered designs. As a result, users can adjust individual elements without changing the entire composition. The model is available through Canva’s Dream Lab, while the company plans to expand access through external applications.
How Canva Craft Generates Images
Canva Craft uses a two-stage process to turn written prompts into visual designs. First, it interprets the user’s instructions and develops a design plan. This plan considers object placement, relative sizes, visual hierarchy, and text positioning.
Next, the model generates an image based on that plan. It supports resolutions of up to 2K and 30 different aspect ratios, offering flexibility across various design formats.
According to Canva, this approach improves image accuracy and makes precise adjustments easier. Therefore, users can refine specific elements without rebuilding the entire design.
Why Canva Trained Craft on Design Templates
Canva took a different approach to training Craft by using human-created designs from its template library. The material includes posters, social media graphics, presentations, infographics, menus, and typography-heavy layouts.
This training helps the model understand how text, images, and other visual elements work together. Consequently, Craft aims to produce compositions that follow established design principles rather than simply combining visual objects.
The model also works with Canva Magic, the company’s image-to-design technology. This integration allows generated images to become editable layers, building on Canva’s AI design model introduced in 2025.
ChatGPT and Gemini Integration Planned
Canva also plans to make Craft available through third-party AI assistants, including ChatGPT and Google Gemini, using its Model Context Protocol (MCP) integration.
This would let users access Canva’s image-generation capabilities through supported AI chatbots. Additionally, the company plans to offer Craft through its API, enabling developers to integrate the technology into their own applications.
However, the company has not provided specific release dates for these planned integrations.
Canva Develops Faster AI Image Models
Canva is working on two additional versions, called Craftfast and Craft-ultrafast. Both aim to reduce generation costs while improving processing speed, although their launch dates remain unannounced.
Previously, Canva relied on several external AI image-generation models. Developing its own technology could reduce API expenses while giving the company greater control over performance and image quality.
Researchers from Leonardo.ai, the AI media generation platform acquired by Canva in 2024, also contributed to Craft’s development.
Rising AI Costs Add Pressure on Canva
Canva’s latest launch comes as the company faces increasing expenses associated with AI development and infrastructure. The company was on track to generate approximately $4 billion in revenue in 2025, but later reduced its growth forecast for 2026 amid concerns about rising AI costs.
External analysts reportedly valued Canva at $35 billion after its valuation declined from $42 billion following the revised forecast.
Against this backdrop, developing proprietary image-generation technology could help Canva reduce its dependence on external providers. It could also give the company greater control over operating costs, image quality, and product development as competition intensifies.
Ultimately, Canva Craft represents a move beyond integrating third-party AI tools. The company is building its own technology to strengthen its design platform and compete more directly in the growing AI image-generation market.
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