Stability AI, the startup behind the AI image generation model Stable Diffusion, has raised $76 million in Series B funding. The new funding brings the company’s total funding to $232 million.
The company announced the round on Tuesday, saying some of the new funding is coming from a number of prominent entertainment industry organizations, including Universal Music Group, Sony Music Group, Warner Music Group, and gaming giant Electronic Arts (EA). Two investment firms also participated: AMD Ventures and Pacific Alliance Ventures.
This is an unusual roster, less a typical venture round and more a lineup of companies that Stability currently relies on for content licensing and distribution deals.
Stability AI CEO Prem Akkaraju, who joined the company in 2024, called the funding “an affirmation of our vision that generative AI empowers every producer, musician, and storyteller.” Mr. Akaraju joined the company in 2024.
The company said it plans to use the money from its latest round of funding to continue building out its “creative production” suite of products, while also expanding its professional services division. Currently, Stability offers a variety of AI models designed for AI music, video, and image generation.
Founded in 2019, Stability has spent the past year working on deals to embed generative AI into entertainment companies’ creative workflows. The company partnered with Universal Music and EA last October and Warner Music last November, allowing each company to not only license its output but also participate in the co-development of Stability’s AI tools.
Stability almost always wins on the court. The company almost won a copyright lawsuit brought by Getty Images in the UK for infringing intellectual property rights by using its images to train image-generating models. In that case, judges ruled primarily in Stability’s favor, but a similar lawsuit by Getty is still pending in court in the United States.
Stability was also sued in 2023 by its co-founder Cyrus Hodes, who claimed he was tricked into selling his shares by another co-founder, Emad Mostaq.
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