Stability AI, the developer of the Stable Diffusion image model, said it has raised $76 million in a Series B funding round, bringing the company’s total capital raised to $232 million.
Funding and investors
The company announced that the new capital comes in part from several entertainment industry organizations and investment firms. Among the participants named were Universal Music Group, Sony Music Group, Warner Music Group and Electronic Arts (EA), alongside AMD Ventures and Pacific Alliance Ventures. Prem Akkaraju, who joined as CEO in 2024, said the funding was “an affirmation of our vision where generative AI empowers every producer, musician, and storyteller.”
Plans and products
Stability said it will use the proceeds to continue developing its “creative production” product suite and to expand its professional services arm. The company offers a range of AI models for music, video and image generation and has pursued partnerships intended to integrate generative tools into entertainment workflows.
In the past year Stability reported deals with major entertainment and gaming firms, including partnerships announced last October with Universal Music and Electronic Arts and an agreement with Warner Music announced last November. Those arrangements were described as co-development efforts rather than simple output licensing.
Founded in 2019, Stability has also faced legal challenges. The company largely prevailed in a copyright lawsuit brought by Getty Images in the United Kingdom; a related suit from Getty in the United States remains active. In 2023, co-founder Cyrus Hodes sued, alleging he was misled by co-founder Emad Mostaque into selling his stake.
The company did not disclose additional financial terms beyond the $76 million round and the new total of $232 million. Stability said the capital will be directed to product development and the expansion of professional services.
Original source: TechCrunch AI