Canva says its new AI features justify raising subscription prices by 300%

Canva Teams, promoted as the platform’s "all-in-one solution" to solve design bottlenecks, tech inefficiencies, and collaboration challenges, is seeing its first price increase since its 2020 launch—some by as much as 300%. The Teams plan, which allows multiple users to collaborate on a design simultaneously, will see U.S. prices rise in early December. Some users will experience a jump from $119.99 annually to $500 per year. For the first 12 months, there will be a discounted rate of $300, but even that is more than double the current price. The monthly rate will also rise to $10 per person, with a minimum of three users required, according to a Canva spokesperson.

Canva attributes the price hike to new features, particularly those powered by AI.

"Canva Teams has evolved significantly since its 2020 launch, with major upgrades in collaboration, brand management, the Visual Suite, and investments in our AI feature, Magic Studio," a Canva spokesperson told Fortune. "Our original pricing reflected the early stage of this product, and it’s stayed the same for the last four years. Now, we’re updating prices for users on this older plan to match the expanded product experience."

The spokesperson added that anyone who subscribed to Canva Teams after April is already on the updated pricing.

Magic Studio, launched in late 2023, is a suite of AI-driven tools for creating images, videos, presentations, and written content.

"It’s the first all-in-one AI design platform on the market," Canva co-founder and CEO Melanie Perkins told Fortune. "Canva’s real strength lies in integrating these tools seamlessly into workflows."

However, some users find the price increase challenging.

"Canva risks pricing out smaller teams that have greatly benefited from the platform," UX designer Chris Kernaghan wrote in a blog post. "These are the same teams that have contributed to Canva’s growth by promoting its tools through word-of-mouth."

While some have voiced concerns, others believe the new pricing is justified.

"Though it affects our budget, the value Canva provides—especially with its AI features—has made it worthwhile," Jonathan Goldberg, CEO of diamond-jewelry platform Kimberfire, told Fortune.