Stability AI Raises $76M Series B From Music, Gaming Backers

Stability AI, the developer of the Stable Diffusion image generation model, has raised $76 million in Series B funding, bringing its total fundraising to $232 million, according to TechCrunch.

The round, announced Tuesday, drew capital from entertainment industry organizations including Universal Music Group, Sony Music Group, Warner Music Group, and gaming company Electronic Arts, TechCrunch reported. Investment firms AMD Ventures and Pacific Alliance Ventures also participated. TechCrunch noted the investor roster is unusual, closely mirroring companies Stability already depends on for content licensing and distribution deals.

Stability AI CEO Prem Akkaraju, who joined the company in 2024, said the funding affirms a vision in which generative AI supports producers, musicians, and storytellers, according to the report.

The company said it plans to use the new capital to expand its creative production product suite and grow its professional services arm. Stability currently offers AI models for image, video, and music generation.

Founded in 2019, Stability has spent the past year forming partnerships to integrate generative AI into entertainment companies’ creative workflows, according to TechCrunch. It struck deals with Universal Music and EA last October and with Warner Music in November, arrangements that gave those companies a role in co-developing Stability’s tools rather than simply licensing outputs.

The company has also had largely favorable legal outcomes recently. TechCrunch reported that Stability prevailed in a UK copyright lawsuit brought by Getty Images, which had alleged the company used Getty’s images without authorization to train its image generation model. A similar Getty lawsuit remains pending in U.S. courts. Stability was also sued in 2023 by co-founder Cyrus Hodes, who alleged he was misled by co-founder Emad Mostaque into selling his stake in the company.

Based on reporting by techcrunch.com.