Canva, the graphic design platform that has gained popularity for its simplicity and versatility, has announced a drastic price increase for its Canva Teams subscription, aimed at businesses. This hike, which quintuples the cost in some regions, has sparked controversy, especially with the company justifying the increase by pointing to its new artificial intelligence (AI) features as the reason for the change.
A Massive Increase
The Canva Teams subscription, which allows multiple people in a company to use the platform, will see up to a 300% price increase in certain areas. An example of this is in Australia, where the subscription for five users previously cost AUD 39.99 per month. Under the new pricing structure, the cost will be AUD 40.50 per user with a minimum of three users, representing a significant increase. As a result, a three-user subscription will rise from AUD 480 to AUD 1,458 per year. If companies stick with the five-user plan, the annual cost will rise to AUD 2,430, almost five times more than before.
This increase hasn’t been entirely surprising, as Canva has been adjusting the prices of its Teams plan since April, requiring businesses to pay AUD 10 per month per user with a minimum of three users. According to Louisa Green, Canva’s head of communications, the new prices reflect the value of recent product expansions, which include AI-powered tools.
AI as Justification
Canva has defended the price hike by highlighting significant improvements to its product lineup, particularly with the introduction of Visual Suite and Magic Studio, both of which leverage generative AI capabilities. These new features are designed for design teams that need to automate and optimize creative processes. However, many users feel that the increase is excessive, especially considering Canva’s initial position as a more affordable alternative to Adobe.
Prepping for the Stock Market and a Growing Trend
Some analysts believe there could be another reason behind this price increase. Canva is expected to go public in the United States in 2026, and this price adjustment may be a strategy to boost profitability ahead of its IPO. Cliff Obrecht, co-founder of Canva, recently mentioned that Australian investors don’t understand technology as well as U.S. investors, reinforcing the company’s intention to seek a more tech-savvy market.
This trend of using AI as a justification for price increases is not unique to Canva. Other major tech companies, such as OpenAI, Microsoft, and Google, have also introduced paid subscriptions for their more advanced AI products, marking a trend where “AI-powered products” are significantly more expensive than traditional ones.
