Stability AI Sean Parker lands on Lifeline from Greycraft.

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Stability AI, the troubled generative AI startup behind Stable Diffusion, has raised new cash. But it won't reveal how much.

Greycroft, Coatue Management, Sound Ventures, Lightspeed Venture Partners, O'Shaughnessy Ventures and angel investors Prem Akarajo, former Google CEO Eric Schmidt, Robert Nelson and Napster founder and former Facebook executive Sean Parker have made fresh investments in Stability, the company. Has been installed. revealed on Tuesday morning. Parker has joined Stability AI as chairman of the executive board, sitting on the company's board of directors with Greycroft managing partner Dana Settle, Coatue Management COO Colin Bryant and Akkaraju – who has been named CEO of Stability. are

“Stability AI has made a global impact by building leading generative image foundation models and fostering the largest ecosystem of generative AI media creators and developers,” Parker said in a statement. “Innovation happens at the intersection of art and technology: The company's world-class research and applied AI teams collaborate with a vibrant community of AI artists, modelers and developers who bring intelligence to the capabilities of the company's core models. extended from.”

The announcement was reported earlier this week by The Information, which revealed in a scoop that Stability AI is close to reaching a deal with VCs as it faces a cash crunch and unpaid cloud bills. Both The Information and Reuters reported that the start-up's value could decrease as a result of the fundraising. Stability AI declined to comment.

Stability gained prominence in 2022 after the release of Stable Diffusion, an image-generating AI model developed at Ludwig Maximilian University in collaboration with AI startup Runway. The stable provided updates to the open source model and developed services around it, eventually commercializing it and turning stable diffusion into one of the most widely used open image generating models today.

Ambitions for consolidation grew in later years, and startups ventured into multiple domains, including code, text, doodles, music, sound, 3D model and video generation, and even biomedical research. But the company's co-founder and former CEO, Imad Mushtaq, reportedly turned the consolidation into a financial disaster, leading to staff resignations, the end of a partnership with Canva, and investors' doubts about the consolidation's prospects. Anxiety grew.

Consolidation had just $4 million in the bank last October, according to reports — far more than the $100 million in capital raised over the following years from investors including Intel — and projected sales of just $11 million in 2023. was Meanwhile, the company was getting $99 million a year from AWS, Google Cloud and CoreWeave to rent cloud infrastructure to train and run its models, and $53 million for operating expenses and wages.

As of December, Stability had hinted at a subscription model for commercial use of its technology with prices starting at $20 per month. The company also considered reselling its compute resources as a managed service, according to the report — and, at Lightspeed's insistence, selling itself.

Mustaq left in March after pressure from investors.

New consolidation investors, including Schmidt, have committed $80 million to effectively manage consolidation. Agreed to write off nearly $100 million in debt with the startup's suppliers. According to the Wall Street Journal, and negotiated the release of $300 million to stabilize future liabilities that were mostly meant to go to cloud infrastructure providers.

It's not clear where stability goes from here. Many of the researchers behind the development of Stable Diffusion, as well as Ed Newton-Rex, who led Stable's creative AI audio efforts, have left. And Stabilization faces multiple copyright infringement suits brought by stock image vendor Getty Images and other artists, who allege that their works are used to train the original Stabilizer without permission. was used.

Accarajo's background in visual FX can drive Stability's customer acquisition strategy. Icarajo was previously CEO of Weta Digital, the FX company behind the digital effects in the films “Avatar” and the “Lord of the Rings” trilogy. Parker says Consolidation is focused on expanding its managed image, video and audio pipelines and workflows, building custom enterprise models and content production tools, and providing APIs to power consumer apps for art, graphic design, social media and gaming. will give.

Wherever the future of sustainability takes it, Parker vowed that the company will remain “committed to open source principles.”

“Our investment in Stability AI enables the continued development of open source, open access and open weight models for the benefit of the entire community,” he said. “The market opportunity in production media — expanded images, video, 3D, sound and music — is just beginning … This investment will enable the creation of even more powerful models and push the community to the limits of human creativity. will allow to increase.”

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