Canva reveals new AI image tool as it races to beat Google, OpenAI

Australian design software giant Canva has revealed the first results of its emergency reworking of its artificial intelligence tools, with an image generation tool it says ranks higher than Google’s and second only to OpenAI. The ambitious claims come after the company was forced to abandon the launch of highly promoted AI products in August, until it could figure out how to let customers use them without bankrupting the company due to token costs. The company issued a rare revenue downgrade and its biggest backers slashed $10 billion from their valuations, which now sit at $50 billion.