Updated Aug 14, 2026 – 1.54pm, first published at 1.00pmCanva and two of its longest-standing Australian backers have wiped $US7.1 billion ($10 billion) from the design software giant’s valuation as it struggles to find its feet in the artificial intelligence era.The downgrades from Blackbird Ventures and Airtree are surpassed by an internal valuation cut by Canva, and come a week after the company cut revenue growth expectations after finding it difficult to roll out AI-powered tools given the soaring cost of using frontier models.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Canva’s big backers slash $10b from software giant amid AI pivot
The downgrades from Blackbird Ventures and Airtree came as the Sydney-based tech outfit cut its own valuation ahead of issuing shares to employees.
TL;DRAI
Canva and backers Blackbird, Airtree reduce valuation by $10B as frontier model costs block AI feature launches. Signals that AI economics remain unsustainable for B2C SaaS; investors now pricing in delayed profitability on AI-centric strategies.
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