Stability AI, the London-founded AI startup behind the Stable Diffusion AI model, which has switched its focus from the UK to the US, has raised a $76m funding round, with investment from three music company giants, it said today.
The Series B round includes new investors Sony Music Group, Universal Music Group and Warner Music Group, along with gaming giant Electronic Arts, with AMD Ventures and Pacific Alliance Ventures also investing.
Other participants in the Series B round include existing investors Coatue, Greycroft, former Google CEO Eric Schmidt and Napster co-founder Sean Parker, who sits on the Stability AI board, as does Titanic director James Cameron. It says it will use the funds to fund creative production and research.
Stability AI today bills itself as “the leader in purpose-built AI products for professional creatives across music, gaming and entertainment". The startup, founded in London in 2019, has closed its London office and has switched its focus to the US, with an office in LA.
It said the round brings its total funding to $232m, inclusive of two equity rounds and convertible notes, under CEO Prem Akkaraju since his appointment in June 2024. Akkaraju replaced Stability AI's founder and CEO Emad Mostaque who was pushed out amid a wave of employee departures, claims of internal strife and lawsuits.
The investment follows Stability AI striking deals with Warner and Electronic Arts to build new AI models leveraging their catalogues and intellectual property. It also follows Stability AI releasing new AI models earlier this year, including one that can produce professional-grade music of more than six minutes long.
Akkaraju said:“Our investors set us up for long-term success because they provide not only capital, but expertise, credibility, and direct connection to artists.”
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