Canva buys Cavalry and MangoAI to power its AI-driven creative future. The powerful Cavalry and MangoAI acquisitions signal a massive creative revolution. While software stocks wobble under investor anxiety about artificial intelligence, Canva is taking the opposite approach by doubling down.
The design platform has acquired motion graphics startup Cavalry and AI video ad company MangoAI in a dual deal that signals an aggressive push into AI-powered creative automation. At a time when Wall Street is questioning whether generative AI will erode traditional software moats, Canva is betting that AI-native tools will strengthen its grip on the creative economy. The financial terms were not disclosed. But strategically, the message is loud.
Software companies have been under pressure as investors worry that AI could commoditize creative tools. Industry heavyweight Adobe has seen its stock slide significantly this year, reflecting concerns that generative AI tools might disrupt legacy pricing models.
Canva, however, appears unfazed. Rather than retreating, the company is expanding its capabilities in areas that demand higher creative complexity: motion graphics and AI-powered video advertising. The acquisitions suggest Canva sees AI as its next evolution.
Cavalry is a small but respected motion graphics startup with a growing following among designers seeking alternatives to traditional animation software. Its tools enable professional-grade 2D animations without the heavy technical overhead of platforms like Adobe After Effects. For Canva, which built its empire by simplifying design for non-experts, this is significant. The company plans to continue operating Cavalry independently while integrating its animation capabilities into Canva’s core product and Affinity; the professional design suite Canva acquired in 2024 and later made free.
This gives Canva something it has historically lacked: advanced motion design functionality that can appeal to both professional creators and its broader base of marketers, educators, and small businesses. As Cameron Adams, Canva’s co-founder and chief product officer, explained, customers have increasingly asked for more robust motion graphics features. Cavalry, already used internally by Canva for certain projects, provides that bridge.
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If Cavalry strengthens Canva’s design muscle, MangoAI expands its AI brain. MangoAI operates in stealth but focuses on AI-driven short video creation for advertising. Its technology tracks performance metrics and recommends optimizations, helping brands refine messaging, repurpose content, and assemble high-performing creative combinations.
This will feed directly into Canva Grow, the company’s AI-powered ad generator available through its business tier subscription.
In a digital economy increasingly driven by short-form video, this move is strategic. Video ad creation requires rapid iteration, testing, editing, and personalization – all areas where AI thrives.
Adams framed the vision clearly: AI can generate much of the creative output, but refining and optimizing across campaigns remains complex. MangoAI’s performance analysis tools aim to close that gap.
The acquisitions land as Canva closes out 2025 with more than $4 billion in annualized revenue, up 36% year-over-year. That growth rate significantly outpaces Adobe’s recent quarterly revenue growth. Canva last disclosed a $42 billion valuation in a secondary share sale before the broader software selloff. The company is not currently raising new capital, suggesting it has sufficient financial flexibility to execute strategic acquisitions without external pressure. In other words, Canva is shopping from a position of strength.
Despite rapid adoption of generative AI tools, Adams argues that automation alone cannot fully replace creative control. “AI is great at getting you to 80%,” he noted. “That last 20% where you’re confident it represents your brand is tricky.” That philosophy underpins Canva’s broader strategy: use AI to accelerate creativity while preserving human refinement. Rather than replacing designers, the company aims to augment them. The integration of Cavalry’s animation engine and MangoAI’s ad intelligence reflects that hybrid approach; blending automation with professional-grade control.
Beyond feature expansion, these deals signal Canva’s intent to move further upmarket. With over 5,000 employees and a global user base stretching into enterprises, the platform is increasingly competing not just with DIY design tools but with established professional software ecosystems.
Bringing motion graphics and AI ad automation into its stack narrows the gap between Canva and high-end creative suites. In a market rattled by AI uncertainty, Canva’s message is clear: adapt aggressively or risk irrelevance.
By acquiring disruptors rather than defending against them, Canva is positioning itself at the centre of AI-powered creative work, betting that the future of design will be faster, smarter, and increasingly automated. Whether that gamble pays off will depend on execution. But for now, Canva is signalling confidence in its ability to shape the AI transformation of creative software.
