Stable Diffusion maker Stability AI raises $76 million in new funding
AI image generation company Stability AI has closed a $76 million Series B funding round backed by major music and gaming industry players, bringing its total funding to $232 million.
Stability AI, the company behind the popular Stable Diffusion image generation model, announced Tuesday that it has raised $76 million in a Series B funding round, bringing its total fundraising to date to $232 million.
An unusual investor lineup
Rather than a typical venture round, this raise drew participation from several major entertainment companies — music groups Universal Music Group, Sony Music Group, and Warner Music Group, along with gaming giant Electronic Arts (EA). Two investment firms, AMD Ventures and Pacific Alliance Ventures, also joined the round. Notably, these are largely the same companies with which Stability already has content licensing and distribution partnerships.
Stability AI CEO Prem Akkaraju, who joined the company in 2024, described the new funding as an affirmation of the company's vision that generative AI can empower every producer, musician, and storyteller.
Plans and existing partnerships
The company said it plans to use the fresh capital to keep building out its "creative production" product suite and to expand its professional services division. Stability currently offers a range of AI models for music, video, and image generation.
Since its founding in 2019, Stability has spent the past year signing deals to embed its generative AI tools into entertainment companies' creative workflows. It struck partnerships with Universal Music and EA last October and with Warner Music last November — arrangements that give these companies a role in co-developing Stability's tools rather than simply licensing the output.
Legal battles
Stability has largely prevailed in court so far. In the United Kingdom, the company won the bulk of a copyright lawsuit brought by Getty Images, which had accused Stability of using its images without permission to train its image generation model. A similar lawsuit filed by Getty in the United States is still making its way through the courts. Separately, Stability was sued in 2023 by co-founder Cyrus Hodes, who alleged he had been misled into selling his stake in the company by fellow co-founder Emad Mostaque.
