Stability AI has raised approximately $80 million from investors including Coatue Management, Lightspeed Venture Partners and Eric Schmidt. The generative AI startup has appointed Prem Akkaraju, former Weta Digital CEO, as its new chief executive.
Sean Parker, ex-Facebook president, joins as executive board chairman. The board also welcomes Dana Settle, Colin Bryant, and Akkaraju.
Investors have reportedly reached an agreement to forgive about $100 million in existing debt and $300 million in future obligations.
This development follows recent challenges, including the departure of founder Emad Mostaque and staff layoffs. The company, valued at $1 billion in 2022, had been struggling to secure additional funding due to lack of a clear business model.
Stability AI is known for its AI-powered image, audio, and video generation tools.
