Is AI worth paying four times as much for a Canva subscription? That’s the question many users are asking after Canva announced a significant price hike for its membership plans.

For some users in the U.S., the cost of a five-person team subscription has jumped from $120 per year to a staggering $500. That’s a 317% increase! Canva tried to soften the blow by offering a 40% discount for the first year, which would reduce the price to $300. But even with the discount, that’s still a $180 increase from what users were paying before.

The Australian-based design platform, valued at a whopping $26 billion, boasts 185 million global monthly users. Some speculate this price hike might be part of a bigger plan to go public, as Canva continues to expand its offerings and market share.

But what exactly are users paying more for? Canva is betting big on AI. In a statement, the company pointed to its new AI-powered features, which it claims justify the steep price increase.

“Our suite of products has grown significantly over the last couple of years with the launch of new offerings like the Visual Suite and Magic Studio,” Canva’s communications lead Louisa Green said in a statement.

So, what’s inside these AI-driven tools? The Visual Suite includes AI-powered writing, the ability to create slideshows from a simple prompt, and even turning documents into websites with just a few clicks. Magic Studio takes things a step further by transforming written concepts into social media posts, videos, and slideshows, all with the power of AI.

But despite the fancy new features, not everyone is convinced that AI justifies the steep price. Social media has been buzzing with frustrated users, many of whom feel blindsided by the sudden increase. One user on X (formerly Twitter) pointed out that small businesses, in particular, could be hit hardest by this pricing change, potentially forcing them to look for cheaper alternatives.

Canva’s expansion into AI hasn’t been cheap. Just last month, Canva renewed a multi-year partnership with Getty Images to provide its users with a vast library of high-quality images and videos. And in July, Canva acquired Leonardo.ai, an AI startup known for its innovative design tools. The entire 120-person team from Leonardo joined Canva’s already massive 4,000-person workforce, underscoring Canva’s commitment to integrating AI into its platform.

Melanie Perkins, Canva’s CEO, has been vocal about the benefits of AI, emphasizing how these tools can streamline the creative process. “With every single AI feature that we introduced into Canva, we really think it’s helping to cut down that time between A and B of getting the idea into an actual product,” Perkins said in a statement to The Verge in July.

However, there’s a bigger picture to consider. The incorporation of AI into business operations isn’t just expensive — it’s also energy-intensive. Developing AI models can cost over $100 million, and as the technology evolves, these costs are only expected to rise. Additionally, AI processes consume a massive amount of energy. According to researchers, it takes 30 times more energy to generate text using AI compared to simply retrieving it from a traditional source.

So, as Canva continues to innovate and expand its offerings, users are left to decide whether these new AI features are worth the hefty price tag. For some, the convenience and cutting-edge tools might be worth the cost. For others, the increase might push them to explore more affordable design options.