Some Canva subscription prices are set to skyrocket by 300%, the design software company has announced, citing the need to cover costs for new AI features.
Canva notified global customers for Canva Teams of the higher subscription prices, attributing them to a need to invest more in the software, including introducing AI-powered design tools.
Some Canva Teams users in the US are seeing their subscription costs go from $120 per year for up to five users, to a hefty $500 per year. There’s a 40% discount for the first year, bringing it down to $300.
In Australia, the monthly fee of $39.99 AUD ($26 USD) for five users is changing to $40.50 AUD for one user, according to Information Age. This means a team of five will go from paying $480 AUD ($323 USD) per year to $2,430 AUD ($1,636 USD).
No price changes have been announced for other subscription tiers for Pro and Enterprise users. Dexerto has reached out for clarification if these tiers will be impacted.
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Canva told The Verge that the increase is due to the “expanded product experience” and value that generative AI tools have added 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
“Our suite of products has grown significantly over the last couple of years with the launch of new offerings like the Visual Suite and Magic Studio,” Louisa Green, Canva’s communications lead, said in a statement.
The steep price increase comes as Canva is readying for a potential public listing in 2026. The company will be conducting the IPO in the US, and it was valued at $37.8 billion as of its last funding round.
While Canva is embracing AI, design software companies like Procreate have openly stated they’ll never go this route. In a video on X/Twitter, Procreate CEO James Cuda was blunt in his announcement: “I really f*****g hate generative AI.”