Stability AI, the startup behind image generation model Stable Diffusion, has raised $76 million in Series B funding, bringing its total funding to $232 million. The round included investment from entertainment industry organizations Universal Music Group, Sony Music Group, Warner Music Group, and Electronic Arts, alongside investment firms AMD Ventures and Pacific Alliance Ventures.
CEO Prem Akkaraju, who joined Stability in 2024, described the funding as validation of the company’s vision for generative AI supporting producers, musicians, and storytellers. The company said it plans to use the capital to expand its creative production product suite and grow its professional services division, building on its existing AI tools for music, video, and image generation.
Since 2019, Stability has pursued partnerships embedding generative AI into entertainment workflows, including collaborations with Universal Music and EA last October and Warner Music last November, each involving joint development of Stability’s tools rather than simple licensing arrangements.
The company has also seen favorable legal outcomes, largely prevailing in a UK copyright lawsuit brought by Getty Images over the use of its images in AI training, though a related U.S. case remains ongoing. Stability was separately sued in 2023 by co-founder Cyrus Hodes, who alleged he was misled into selling his stake by fellow co-founder Emad Mostaque.
Featured image: Credit: Stability AI
