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Canva to Purchase AI Startup in Two-Year Agreement to Overtake Adobe

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In its second acquisition of the year, Canva Inc. is acquiring the image-generation firm Leonardo.ai, stepping up its push into artificial intelligence to challenge Adobe Inc., the market leader in creative software.

Canva can now include the smaller company’s video and picture generating models in its own products thanks to the agreement, which took approximately a month to complete. According to co-founder Cameron Adams, this is Canva’s fastest acquisition to date, Bloomberg News said. It shut down only a few months after the largest startup in Australia acquired the Affinity software package, which is widely used by Mac customers of Apple Inc., in a transaction valued at several hundred million pounds. Canva did not provide a price for Leonardo.ai, and Adams would not provide further information.

This year, Canva, a creative software firm on the rise, raised capital at a valuation of $26 billion, putting it in competition with industry leader Adobe. ByteDance Ltd., the company behind TikTok, is rapidly expanding its user base with CapCut, an app for editing videos.

With its most recent acquisition, Canva gets a 120-person team at Leonardo.ai, which develops software that enables users to create and modify photos online using text prompts. Blackbird Ventures, a Canva investor, supports the 2022-founded firm, which raised $31 million in funding last year. Over the previous 18 months, users have created over a billion photos on Canva’s platform, the company stated.

This year, Canva, a creative software firm on the rise, raised capital at a valuation of $26 billion, putting it in competition with industry leader Adobe. ByteDance Ltd., the company behind TikTok, is rapidly expanding its user base with CapCut, an app for editing videos.

With its most recent acquisition, Canva gets a 120-person team at Leonardo.ai, which develops software that enables users to create and modify photos online using text prompts. Blackbird Ventures, a Canva investor, supports the 2022-founded firm, which raised $31 million in funding last year. Over the previous 18 months, users have created over a billion photos on Canva’s platform, the company stated.

With the addition of Leonardo.ai’s services, Canva’s increasing range of AI capabilities is expected to attract some of Adobe’s largest commercial clients and spur revenue growth.

Canva, which was founded a decade ago by Adams, Cliff Obrecht, and Melanie Perkins, has become a rival to Adobe, which has long been the industry leader in graphics software. Despite the recent addition of AI functionality to many of its products, Adobe’s stock has dropped more than 10% so far this year as a result of the collapse of a $20 billion acquisition bid for Figma in December.

Although Canva hasn’t disclosed specific intentions for going public, investors have long considered the business as a potential acquisition. In a previous interview, co-founder and chief operating officer Obrecht stated that the company had just finished selling $2.5 billion in secondary shares.

Eight businesses, including Affinity, visual AI firm Kaleido.ai, and picture distributors Pexels and Pixabay, have now been acquired by the Australian upstart.

“Generative AI can’t be a one-trick pony,” stated Adams, the chief product officer of Canva. “We’re entering a whole new world of being able to change and adapt the output generative AI is giving you.”

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Zomato Evolves into Eternal: Redefining the Future of Digital Commerce

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Zomato Evolves into Eternal: Redefining the Future of Digital Commerce

Zomato, one of India’s leading food delivery and quick-commerce platforms, has officially rebranded as Eternal. The transformation reflects the company’s growing ambitions beyond food delivery, encompassing various business verticals, including grocery delivery, live events, and restaurant supplies. The rebranding marks a major shift in Zomato’s corporate identity, aligning with its vision of building businesses that last “beyond a lifetime.”

Why the Rebranding?

Founder and CEO Deepinder Goyal explained that the decision to rename the parent company was driven by the rapid growth of Blinkit, Zomato’s quick-commerce arm. Initially met with skepticism when Zomato acquired Blinkit in 2022, the business has since become a key driver of the company’s future.

“We thought of publicly renaming the company when something beyond Zomato became a significant driver of our future. Today, with Blinkit, I feel we are here,” Goyal stated.

What Changes Under Eternal?

The name Eternal will now serve as the parent brand for Zomato’s four major business units:

  1. Zomato – The core food delivery business.
  2. Blinkit – A quick-commerce service for grocery and essential deliveries.
  3. Hyperpure – A B2B platform supplying restaurants with kitchen essentials.
  4. Zomato Live (District) – A live events platform.

While the company’s corporate identity is changing, the Zomato app and branding for food delivery will remain the same. Customers will still order from the Zomato app, and Blinkit will continue to operate under its own branding.

Significance of the Name ‘Eternal’

The word Eternal symbolizes longevity and endurance, reinforcing the company’s ambition to build businesses that last beyond generations. This philosophy reflects Zomato’s long-term commitment to innovation and expansion in the digital commerce space.

Goyal had previously mentioned the Eternal name as an internal identity in 2022 but clarified that it would not replace the Zomato brand. However, with Blinkit’s massive growth and the company’s evolving focus, the name has now been publicly embraced.

Market Impact and Future Outlook

The rebranding positions Eternal as a diversified technology company rather than just a food delivery platform. The move comes at a time when quick-commerce is becoming a dominant force in India, with competitors like Swiggy Instamart, Reliance JioMart, Amazon Fresh, and Walmart-backed Flipkart entering the space.

Eternal’s strategy will likely focus on:

  • Expanding Blinkit’s footprint across India.
  • Strengthening its supply chain for Hyperpure.
  • Growing Zomato Live as a major player in the events space.
  • Continuing innovation in food delivery services.

The transition from Zomato to Eternal represents a bold step in the company’s journey, signaling a future beyond food delivery. With Blinkit’s rise, Zomato’s leadership in restaurant supplies, and its growing events business, the rebranding aligns with its ambition to create a multi-dimensional commerce platform.

As Eternal, the company aims to shape the future of digital commerce in India, staying true to its mission of building businesses that stand the test of time.

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U.S. AI Startups Eye New Opportunities Amid DeepSeek’s Rise

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U.S. AI Startups Eye New Opportunities Amid DeepSeek's Rise

Just last week, OpenAI was seen as the undisputed leader in artificial intelligence, with its cutting-edge models driving a soaring valuation. This week, however, its dominance is being questioned as Silicon Valley shifts its focus to a more cost-effective competitor: DeepSeek.

The Chinese company recently launched R1, a challenger to OpenAI’s o1 reasoning model. Early testers claim R1 matches o1’s capabilities while being significantly cheaper to operate. The announcement sent shockwaves through the market, triggering a massive stock sell-off on Monday that erased nearly $1 trillion in market value.

DeepSeek’s Disruptive Impact

Industry insiders believe DeepSeek’s approach could reshape the AI landscape. Unlike OpenAI, which focuses on Artificial General Intelligence (AGI) through increasingly complex models, DeepSeek emphasizes efficient, application-driven AI that is more accessible and cost-effective.

Roi Ginat, CEO of EndlessAI, sees this as a breakthrough for startups and smaller players.

“DeepSeek’s success represents a democratization of AI development, where smaller teams with limited resources can meaningfully compete with well-funded tech giants,” Ginat told Business Insider.

While OpenAI remains a major force, its role in the industry could shift. The competition between expansive, high-cost AI models and streamlined, purpose-built AI systems is fueling innovation on both fronts.

Cost Efficiency vs. AI Infrastructure Investments

DeepSeek’s biggest advantage is cost efficiency. If it truly reduces AI training and inference costs by tenfold, as some claim, it could accelerate AI adoption far beyond current analyst predictions. However, Pukar Hamal, CEO of SecurityPal, warns against expecting immediate disruptions.

“It’ll take more than a few tough earnings calls to make the biggest AI players reconsider the staggering GPU investments we’re seeing for 2025,” Hamal said.

Major tech firms are doubling down on AI infrastructure. Meta has committed $60 billion to AI investments, while former President Donald Trump recently announced Stargate, a $500 billion joint venture between OpenAI, Oracle, and SoftBank to expand AI capabilities across the U.S.

The Open-Source Debate: DeepSeek vs. OpenAI

A key distinction between OpenAI and DeepSeek lies in open-source accessibility. OpenAI keeps its models closed for safety and security reasons, while DeepSeek’s AI is open-source, allowing public access and modification.

Satya Nitta, CEO of Emergence AI, sees this as a significant advantage for DeepSeek.

“DeepSeek R1 broadens access to AI reasoning, highlights the power of open-source, and sets a new benchmark for AI capabilities,” he said.

However, open-source models also raise regulatory concerns. Hamal cautioned that unchecked AI development could lead to security risks, drawing parallels to the U.S. government’s scrutiny of TikTok. White House advisor David Sacks further fueled controversy by suggesting that DeepSeek may have trained its model using OpenAI’s data, a claim that could spark legal challenges.

Despite these concerns, Hamal believes the market is shifting toward openness.

“Openness typically wins in the long run. If DeepSeek forces a reset in the increasingly closed foundational model market, it could be a net positive—provided we maintain the right guardrails.”

AI Innovation: Doing More with Less

If there’s one major takeaway from DeepSeek’s rise, it’s that AI models can be developed more efficiently and affordably.

Matthew Putman, CEO of Nanotronics, sees this moment as a validation of a broader trend.

“To me, the competition itself is less significant than the realization that AI can be built at lower costs and applied beyond just large language models.”

As the AI landscape evolves, the battle between expensive, high-power AI and cost-efficient, open-source alternatives is only beginning. Whether DeepSeek emerges as a true OpenAI rival or simply pushes the industry toward greater accessibility, its impact is already undeniable.

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Budget 2025 Highlights: Major Tax Relief for Middle-Class with Zero Tax on Income Up to ₹12.75 Lakh

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Budget 2025 Highlights: Major Tax Relief for Middle-Class with Zero Tax on Income Up to ₹12.75 Lakh

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025 in the Lok Sabha on February 1, her eighth consecutive budget announcement. The budget introduced significant reforms to provide relief to the middle class, simplify the tax structure, and boost economic growth. One of the most prominent announcements was the exemption from income tax for individuals with income up to Rs 12.75 lakh under the new tax regime, along with several other measures to reduce the tax burden.

Important changes in income tax in Budget 2025:

Under the new tax regime, Finance Minister Nirmala Sitharaman has proposed a zero income tax for people with annual income up to Rs 12 lakh. The revised tax brackets and rates are as follows:

SalaryIncome Tax Rates
₹0-4 lakhNil
₹4-5 lakh5%
₹8-12 lakh10%
₹12-16 lakh15%
₹16-20 lakh20%
₹20-24 lakh25%
₹24 lakh above30%

This restructuring will provide a major relief to the middle class, which is expected to significantly reduce their tax liabilities.

Streamlining of TDS and other reforms:


The budget also proposes to simplify tax deduction at source (TDS) by reducing rates and limits. Other major reforms include measures related to leasing, remittances, higher education, the sale of property, and the criminalization of certain offenses to promote ease of doing business.

Relief for the middle class:


The new tax regime, along with reduced tax rates and a zero tax limit for income up to Rs 12 lakh, is expected to significantly benefit the middle class in India. The budget aims to increase disposable income and boost consumption, which will provide a much-needed boost to the economy.

Key findings of the 2025 budget:

Fiscal deficit: The fiscal deficit is estimated at 4.8% for FY25, which is expected to come down to 4.4% in FY26.

Jan Vishwas Bill 2.0: Over 100 provisions will be decriminalized to improve the investment climate. An investment-friendly index for states will also be launched in 2025.

Revised duty rates: Seven additional duty rates will be abolished, leaving only eight rates in force.

Interest-free loans to states: An allocation of Rs 1.5 lakh crore has been announced for 50-year interest-free loans to states for capital expenditure and infrastructure development.

Customs duty exemption: Basic customs duty on 36 life-saving drugs and medicines has been completely waived to make healthcare more affordable.

Budget 2025 focuses on providing tax relief to the middle class, simplifying the tax structure, and boosting economic growth through policy reforms. With measures like zero tax on income up to Rs 12.75 lakh and streamlining of TDS, the budget aims to improve the disposable income and overall economic well-being of citizens.

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