Stability AI, the startup behind the Stable Diffusion image-generation model, said it raised $76 million in a Series B funding round. The new capital lifts the company’s total fundraising to $232 million.
Who invested
The company said the round included several prominent entertainment and gaming companies: Universal Music Group, Sony Music Group, Warner Music Group and Electronic Arts (EA). Two investment firms, AMD Ventures and Pacific Alliance Ventures, also participated.
The investor mix is notable because it reflects commercial partners with whom Stability is negotiating content licensing and distribution agreements, rather than a typical pure venture-capital syndicate.
Use of proceeds
Prem Akkaraju, Stability AI’s chief executive who joined the company in 2024, described the funding as an affirmation of the company’s vision that generative AI can empower producers, musicians and storytellers. Stability said it will use the funds to continue building out its "creative production" product suite and to expand its professional services business.
Stability currently offers a range of AI models aimed at music, video and image generation.
Partnerships and legal matters
Founded in 2019, Stability AI has spent the past year signing deals intended to integrate generative AI into entertainment companies’ creative workflows. The company struck partnerships with Universal Music and EA last October and with Warner Music last November; those agreements have involved co-developing tools in addition to licensing outputs.
On the legal front, Stability largely prevailed in a United Kingdom copyright lawsuit brought by Getty Images, which had alleged the company used Getty’s images to train its image-generation model. A comparable lawsuit from Getty in the United States is still working its way through the courts.
Separately, in 2023 the company was sued by its co-founder Cyrus Hodes, who alleged that fellow co-founder Emad Mostaque had deceived him into selling his stake in the company.
Conclusion
The $76 million Series B strengthens Stability AI’s ties with major entertainment and gaming partners and provides capital to expand its creative production offerings and professional services. At the same time, ongoing legal disputes — particularly the U.S. case from Getty Images and the co-founder lawsuit — remain potential risks for the company.
