Stability AI, the company behind the Stable Diffusion image generation model, has raised $76 million in Series B funding, taking its total fundraising to $232 million.
The funding round includes participation from major entertainment companies such as Universal Music Group, Sony Music Group, Warner Music Group and Electronic Arts (EA). Investment firms AMD Ventures and Pacific Alliance Ventures also joined the round.
The mix of investors reflects Stability AI’s growing ties with the entertainment industry, where its technology is increasingly being explored for creative production, content development and distribution.
CEO Prem Akkaraju, who joined the company in 2024, described the funding as “an affirmation of our vision where generative AI empowers every producer, musician, and storyteller.”
Stability AI plans to use the new capital to expand its “creative production” product suite and grow its professional services business. The company currently develops AI models for music, video and image generation.
Founded in 2019, Stability AI has spent the past year building partnerships with major entertainment companies. It partnered with Universal Music Group and EA in October last year, followed by a partnership with Warner Music Group in November. These agreements allow the companies to work with Stability AI on developing AI tools for creative workflows rather than only licensing AI-generated content.
The company has also seen progress in its legal battles. Stability AI largely prevailed in a copyright case brought by Getty Images in the UK. Getty had accused the company of infringing intellectual property rights by using its images to train its image-generation model. A judge largely ruled in Stability AI’s favour, while a similar case filed by Getty in the US is still ongoing.
Stability AI also faced a lawsuit in 2023 from co-founder Cyrus Hodes, who alleged that he was tricked by fellow co-founder Emad Mostaque into selling his stake in the company.
The latest funding gives Stability AI additional capital as it expands its AI tools across image, music and video creation while deepening its relationships with major players in the entertainment industry.
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