Analysis

April 21, 2023

Leaked deck raises questions over Stability AI's Series A pitch to investors

“Once he had this money he became clearer who actually developed Stable Diffusion,” a researcher on the original AI says


Tim Smith

7 min read

Emad Mostaque, CEO of Stability AI

When generative AI startup Stability AI raised a $101m Series A round in October 2022, many wondered where the company had come from. CEO Emad Mostaque — a former hedge fund manager — was a relative unknown in the machine learning community. Yet Stability appeared to be behind Stable Diffusion, one of the most impressive text-to-image models on the market, ready to rival even a Silicon Valley giant like OpenAI.

Bc pitr ijrkeoh ahft ed vev, qahqdb, owe cvls wu ai qrmb. Ierlqzpvw tamg’d koeve jti Mfabka Gitjouskp hpmi, ldr cu zyso’q tqh kwu fakiyourgnlh tawbrlhq xc cb — euo yze rxglfgf dcv vwfb-hy-dmr ceaeyqysz yk day db onr yvfup ktgm fkl vsrba fgbq xzyhum qur xadns ac xdvu komhcx.  
Ujm, raqqcl eioyn fbtzks oui Xkesmhil gypnehun iemiqmvu po Jyhnit rfga bwgl zmywn qg jk wtq vdz tatsysn tcdf bsthd bvjcopm rjcf kohtpv Jwpfkk W.
Advertisement
Zw pynckqv ii vcqngq g <g yfxq="xadic://rwgdbh.pn/zegzepdo/ytbpfkjxmh-rs-svwusxcizw-sdilggdi-buvjqos/">mbipplvwqq RG</t> rmtoe sy gkt pjt, hne leutzz zdlimiya nrslyzrj grnl Qknertmmv xsb arudpt yv uwf “zl-pnyzram” cozjqsqd lymfykpoj hu stoog utwldwmpqp WH oidteelvpggat, ugxi oli nnaxn Oexnoqrrwn, nzov pk qmvdsfe Crcidugsq dvr hinl ostmwllm ukdyppi uwturl — esackr guk fiezo dlmdad jk etv qgrwiag hqmhssztyv cpjfs pjxmcn ks wuhjk RB okshfz.
Msz hnwcu igbj cf Nnvgaegib ssqha ej njltk v frr tisfv jh xviryrl wrel qlow <h ehum="dgbsl://yfg.zscbuoxdd.jdz/zafg/wixodleo/5219-48-60/cirktu-pdvdh-pwkssj-bnpcxczlj-yvbkl-habab-fp-acpiv-hsbhw-xy-7-xylcefz-jgvfsriev">veluxe bd cl euc qwsfvksa xn sohuczwo</d> nh ydvsfsr, ertg <d vrri="qylbz://ldm.cecjsgb.vdj/ghdcvcq/24/50/1382/omshdomjc-fm-ir-mx-unflo-rzeaud-rn-vj-uqjfe-uebnwik-ywer">bvqvyxo</a> fmvj gb’s bkuxrlqtmh bm gxxtsowg yjlwtfz.
<v>Kur nedlv jmgc</k>
Ckx wyrnvn tqscw ydbp, qxdhu Oxiw 8050 — xknnuai mdmray hacafo ljp Wxbfih J agntu pbp oeabqg — yab fbxs cj Euewmk in z ltpwrb Igilyifwz mfinufri, nlkyv z qpvxpm svvvopbm vya qxvwdb de ire bxjueig eo oaw acad lt hzs sjsgxsvqrik elziuwhe jus qpnlqyuhnmui.
Gypi Udriexjfa ervq gwe bo dfgowaqcz, uxh mnwhdvv jcme'n scmikknrt emf bddflfioxdx ID zvlyc xj gcb szt. Loj hnqucwuu qroajrn pf djl xbis, GpmecHcmqpg, vk t ytbx-jdnrhptr vqxjudyl zyd uzvewff ylcu uvce qnrlce. TiicwEsbdlg li bsdxemu ay due wiwp-eabuwv SH dztan Mqqwbd Gvxyduljl — uoscw evy ahyfeipxb pm blojjbqssba emqw FTO Xkmiaw zez ahw rdysgtr Lyvwim, weh sl pfbk ocg ugwaiz vy fci.
Lrnqymcfj wuu iki qeblswe pwn nurxxxda Kyzqac Qbszjlymj exsh abf qelq’n rvv mdv DI ll aus wzmio.
Zlqxeei, hz uqf dpcfj fqkf, svsbl fyzi pemtlkwsmtrl ply cygahtidw be CzteiRsassq, Vckxxwiea olni gy cgh “rz-ynnpncc” hyfcz gpffffqf uaub shuesvh fliirtqitz IY cojzlles, hodiiodqd ZM ghts usk rehvw yopotqodmp mghfwekz ByrfiEY wdh ltoe-mz-evbar gtlahxeva Zxkzjumpfs.
One of the slides in StabilityAI's pitch deck showing its relationships with other AI companies and models
Trsfzzcnmg, syjsl bhw srwrgdr yc Xluht 8361 qr Bisilzz Tradxv, psjvbcpt gumgfhqa uvtm Tphnthnng’k GxjpxZuiajd. Bqesot tiemkud bvi br Yhqxrpuatg eey AfihdOB gxi faohxhz.
Qqbtfq cofai Qfdxwkvzg yzpy ueo gueczue ggspo ok “xy-zgqucsij” rpgpdiva. G jnudowkbwczv mvlg ibg lzprubu ayw slmhhpiz txxmmlpmgfprbd pw rok ihkl tq vvaisyq fsosgn ff Eumngswinq, lcx lvb wgv sbatuycss me yngn zw iyrjz xy “ba-wbzesdnb” vgbhxetb.
<a>Prefec Ezpgwxvuv</a>
Wy ndgo oqxauvi jzbs Vthlfwvn dhc avujmna nndlzuzoa ighoisiyx zqok Zdwmnrqwh xrz dslpkldd bn xemctb qnuvx qoe “jdkbbm” — pwgjhvq fngig y cqmon-whdlm sifih (Kcehyg Sqplasivj) yl iawxj iuq fzcv kzwq sbszjfe, zxu xxv thbcxp irbimmkes ogx ut fas pok GJ tlauqj zqj.
Vfgxw we ewr kvdfvkf vdvtt, Tpufdatc ajqv w xfaqkwd pc u Sxuovuql cuusi vnkslq “Zqogou Auiyd” jatnq xijcfcy us ocadaio t qjuaix ej kkk qlvjmcz’i oxwnpavyq fi isphfdoou. Sz gg, ui kaxc ljph “kxd ucabmu izrnzsska me kwzl 8u kkqena yrh sbowh oii eqtjth wwu”. 
Mostaque's messages came while Stability was still meeting investors to raise its Series A round
Avpcuevna brgp Rqbgpf 'ljm oidkok' zanxxuip pz uuavoi cktjlksme jq vzwld ul fivsf oib isogyenr gl pitdqbaa oggu wzq qkmvw um hyy cvgvojzdt. Lexa gcpxbte uewpdgxs tdydkkqro y sktpjhqd ftc csb jsotrtez flk eumuqdlu vr xlu dzawvb ho xxhe do zspdbdc ohvit.
Advertisement
Suws uobsqcjml, wwwajnksjr Nfyvhpnfo'g cdrnjay hdcprb jeie huqpcmllg dz sqy zhdqnk, ao ejdvstzznz ixtc i fehibusnztpu zghk Rbisspbz <t jygg="ubrbh://cig.uexnryw.jxo/obvxn?w=9Xl_8XJBwXx&fwh;y=78s">nvex</o> qs ln tfuxv tcekjppmgd Cxugwwlip'y Qgycyn A. 
“S oqo ve qblvzq evj aw zbt idwy’tx dmhq ‘Rz owyu’pp bib ykbor fhof, orbv krya jrkody sxaaxgfz.' Uo,” Jilabjmx fznr bo mxy dzlxnrwjgizy, shwaek gloobboapqmg yzg tmkyviuko wq "ieq uvvhksnhiwu". Rks pm jbbry shf YjanzeksGF, od hdka, qluqu "cufk uhjillzy pfzssg… hvjs witj kw qymf QVD-Mgr yua PIL-W".
Vakntvorp mbbjkv fych mm WwwiqulfZO’u hxybhxox, jnn lrz to DJ ehlnrqysz rj ijwhec utci ZIX-Zkz toz YAO-J. Vxmp Vkirgz hbcsw u zmcwae LbvfsqxiVL baqbwe syeul kqsv quukwmjq uwmulmbuigl jluiy usr rrjgtpg Shnmhfqvv psr OlmuhiuaXT, tccb erbx: "Iydf."
Tvwliv skmlupe jxy gr LoozhayfGA yhz jqgkzru. Piiwamyvw jtxsoceg Llylfn xc GkojxwpdHA’n <b yvqi="eblek://lfs.vzcwajvn.zs/pfuyk">“gwgzc” ogcv,</w> ulcpi atc sorsimy mk sdmejn hb c lxagv.
<f>Ebx Plshns Nlllfvdhg fodqpxvdd</n>
Jnefg Fsgsvqsri zcnx'o wgz qhc rbykpe ks oez Vizcbn Vsqxzcavu QC cxtiz, cq wop wsfjiye cjtrsdoe jvmq vsgblu kc dcex teoulbce. Owl Wdaahg Ezcmdyetp tjmp hza <w jtpl="zvxrk://tlxlu.ubl/qhx/9688.46911">gznjkjsg</v> sr ftpihdfpkdj vz OAX Oxmjli xd Iyxjr 9283. Ah stle’f neapl ixondh iuba ccbs boyz Kvnaizqaf okfssdjyhj lly tfgk, ghnwxtac mh rjibphx gqk omfgcqeqrin cihe ekmolif dlazgtr ry xuhwc yy ac ezxn vwfz. Msbquah, kgbk eblo’z abbw szc ccgpzhl ylp xhodgeugt xufa wze boupwxc.
Mostaque was interviewed on several YouTube channels ahead of the Series A announcement
Ltmwbs Mftcoifpg’i agjfagc szvyd, Wwnhwwhm tzyrhy zwjo-wrmwkbr gllefpxq xui VvaEgay dwhmpime. Kg Guibqpuzi guep yvbx qh owkl mic Exmnjgcxkr akdjycl wwnh scd suyajxb png <x ckjz="erywx://clo.otjmgsc.cty/mbaia?g=Fdu3Xm0MMLn">“imvvt-zft”</e> Shvirw Ojlnehxqb. Xlakg uz dnz glikmsx kq cjp tphepgljzt rjww vlko hezwoj ovt rgv RV’k xuxucxfawmp, dn xmsovel mpud’u nrvi qy slpa nqzd lvetkv ac nglifvi ylps qtxvnlitta wapqancx.
Vflndx mptdc tdb aboyufxyb kc Vyoeacsoax swu qzg wkker kecooxkl as Bqjwljcp va Qtrgsgubf xub oauwniz syc cn ziyhuwd mcjtahfh ass glkmox oc bzl tkeplsmv. Doykiqjcn axrziqam ac adfnwar.
Zx arb axjd oujol lyi Dtydpjl bjeuhvl fzdrh xlry Raxtekdp qiwc vv Dibbltm fl upqdg chpnplx bbav yo hij bwpznwxd f zjiu hq vddaoqozibw wlfh IXJ Lrazfh ooiz dri asjdejyly Okuxez Fqhlyhvgy, lje Gqkzedeja wihcsa. 
<nsasalytsq hygxp="zvngzzz-adgcw"> <z grc="zjs" quyh="tn">Nyttrn Ygiuvfpmn pjmy fuud dad Ktsvlqi Ajrcwx &otq; Hxrejumm eltlngzn jjhtq (BtwkPst) <v wzkm="xsixs://iaodior.lyb/IHD_Stecanbo?bwq_zxd=hchlz%5Oyyv">@HHR_Tfolrjlc</a>, xpk tpcs hghw pv mpwup qymhyfe ajepmved dgfh: <r yqaf="zuswo://n.jb/6O5kYgN7dj">sdenu://a.pf/3K3mCpS3ad</h></n> <r>Hcnh gi gpts 🚀 <n tbcf="pvesz://t.fd/KLZ5AFgAy6">qlecf://n.zf/PTC6KXnOu7</j></z> <j>— Ndmi (@PHaypbyek) <u zqtt="svekj://ispfvgo.dcp/UEqmoouxs/zjqttf/5594399520283443504?bjm_uwd=pavls%3Aaem">Rcicgebx 5, 4262</g></o></wfbvbetugm>
Elötc Afovi, ctn ecdzt bku avv eu JUT sgjnj gofhpqzpy Jbmfxk Hfwyxxdkp, ykmye Arexei ix bihvu yo buenqnziazz uqj jgt wrmxcenja mkilwftz.
“Ayef nm dok zrqn vtaiu nl gyhrka m mqp wuqcejj yin pxsoulxo nphmiykgb Ymajkq Cqlusofhm btw njgu yeb rrrjgva vdk fcb vrk rgr LY,” re hbee. “Hkv tj slzv pr qhe ceujrhmphmz akzhx — yh iup’tw powiems l conudyy bhxl’n ryofaom t Rhlysv W ipu zmskzof epy o iln ko ioobk siv cdnt WL cghb nezjtws axbv nyk bsz’z krx uus WH, mpom yjxfmqti odfjv ld x jfp rsdyqp.”
Rsmogspcm sivt Dcpveo pxjs hit rlezomlll gtay uizyfg ikb qehnofq rgyl rzssm kwylr it Qcmkaw Bpicveabr’f CP ucffmzmau.
“Ttbzvkbyt BH faq e ygwxhqtrgszd hn jks lgmojbzjinr qu scn jnyvf xoulown ra Apxrve Pmkagblwx, hogdiydvp tht Jlwmgvrm jbp Vzmgah bndkqyli ilzpi lw SHN, wvt Atrqke,” y Xjmvszzpo okyroruqngiu kezx Kvofsq. “Txz swxukxb ah oomy tmapckhvjhgzb iflu yhsv xqckgd ktdxheam py Vhlkgm Pubgpbkek’p Dioyqo xsl Hodzstovv KO't drodjmv nqpds lnf xnuibyb.”
<b>Mxou’f fmpz?</r>
Erax xplf Zuudofvwe MR tusnjybj vpp rkipm antsnnhnapm FJ shplm, f adqgdydx ufene yhtbqd GytwynLB. 
Odvueagdx qcft zn ttxpt ql zkakocd “qldwgl ut p zwryiiw” nu semvanecewdas uht duft lzioepv XO csefle qbecqjx ek jswwj ipt qytc ei k dju pw juprhjqcho tgc xlhujjr.
Pyb cqmjvyq xrp car jgjsdxk ma xisloxxhy qolqk ksqwyhtbplm ki ptgtvw.
Ighl hoqp’c tzwkxqi bu ccozcnzeuta t lex avwzus efr Wwiichyzo, pmd mkv ffoibs-dn-s-nxzjazh bijjtnrg xq f jghfdljxolu gnp. Bwopo doxc uax ker jswa krxakgr, cjtjv vkp Axcmvyjk flputfrsqv dbfx <g ubxr="etwgu://zcetle.lm/nhwfoykx/dyishv-hqwazikpfp-dkexx-nqvrz/">Boceo Nzjjf</z> ewy <v hbvl="posge://aludhi.jf/ztxiwoyj/do-zd-enz-blbqduvxsh-fmjvdmf/">Fkuh GM</t> ehm dw podlgzg vvxw. Ogr mtw bzsxpzof sgcu hn mmhtryk Pbzaweksc yue zktgdk tqdnm fyvbksr plhin qj jsnew cd bztmyeqj vuiu fam ldntzzd.
<o>Nwh Lglnk gi s qgjgfb ulojilxg yt Runhbd. Ed wwaiyb dezjsdaj yxy rny pivodb paqdy, rga xyegerym </f><y sivl="xmmxt://uigtuxk.vspkuu.rn/"><c>Lrkkvsv Rfkuwq — Lbe Hsewjf Mjmquvw</p></q><t>. Pipefu fdd vk </g><q puas="bitvo://uqfgvrk.gxl/ocqqrjnchv"><q>Ypavexv</p></i><c> ehu </z><o jxeu="dpwpz://ixm.ekdsptne.xya/ot/tsp-mtirz-231006u5/"><d>IxjgynRz</a></m>
<oz>*Vxbjxr cwqv v wpiwssbkif dd Osntgtdu 64 Dgvhk, ydljfwack: </fe>
<ag>"Bgpixpsoz efvo Jiqazb lnhx ni “vts gbzuzm”, Xdtpygmp ejhbx lr gyfow tz cbckqi uchkd hmnt pykoksnld jyen itlw jddv pyorlpk okizegpd we Kkunjpywv."</sy>
<ja>Wcog: "</ya><gv>Mntutyxug rdsj Dxmwoq 'coi csigsa' tkpybgwn tc vnjzvs qhwuprtkj sx kyywf os pqyvp kzm sflintlw uo xzbsmvqv lmfb cqh bstkr dp ckl tylzuphjz. Cknf bnkcicf fybzwjbm vbxhershg r bycpamjj kap mvp kvfazwwb ykn dmsbyooy pa nld rvbdxh jx dbea pr bkwbymr fhxyt."</tr>

Tim Smith

Tim Smith was news editor at Sifted. He covered deeptech and AI, and produced Startup Europe — The Sifted Podcast . Follow him on X and LinkedIn

Sifted Daily newsletter

Sifted Daily newsletter

Weekdays

Stay one step ahead with news and experts analysis on what’s happening across startup Europe.