News

July 4, 2024

Stability AI still fundraising for its $80m round

It was previously reported that the startup had secured $80m in financing from Lightspeed and Coatue

Tim Smith

2 min read

Stability AI is seeking to raise an additional $30m in financing from existing investors, after landing around $50m in its latest fundraise, Sifted has learnt. 

The last round of investment came from Greycroft, Coatue Management, Sound Ventures and Lightspeed Venture Partners, alongside ex-Facebook president Sean Parker and former Google CEO Eric Schmidt. Reuters reported that the company had raised $80m, but sources tell Sifted that Stability is yet to close the final $30m of the round, and hopes to secure the additional capital from existing investors by August 7.

Stability did not provide comment.

Previous investors in London-based Stability, which financed the development of image generation model Stable Diffusion, include Intel and O'Shaughnessy Ventures. 

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The $50m cash injection represents a significantly different scale to other recent raises by GenAI startups. Paris-based Mistral landed €600m last month, six months after raising a €385m Series A in late 2023, while the German Aleph Alpha raised €500m in November 2023 — with €110m in equity and the rest largely in grant funding.

Stability AI is entering a new era of management with this last injection of capital, as it brought in Prem Akkaraju, previously CEO of visual effects company Weta Digital, as its new chief executive. Sean Parker joined the company’s board as executive chair.

Founder Emad Mostaque stepped down from the CEO role in March, after a period of high profile departures at the company that culminated in Robin Rombach — one of the lead developers of Stable Diffusion — exiting.

Tim Smith

Tim Smith is news editor at Sifted. He covers deeptech and AI, and produces Startup Europe — The Sifted Podcast . Follow him on X and LinkedIn