Stability AI, the developer of the popular artificial intelligence rendering tool Stable Diffusion, is having a hard time financially.
The increasing popularity of artificial intelligence technology, OpenAI and NVIDIA Although it provides great profits to companies such as, the conditions are not the same for every company. According to the news, Stability AI is facing a very serious financial crisis and the possibility of selling the company is among the options on the table.
Actually Stability AI Everything started quite well for him. in 2022 Emad Mostaque, the company’s CEO at the time, managed to receive an investment of $100 million with a valuation of $1 billion. Since then, he has spent much more on salary payments and server and processor costs than he has earned.
Last quarter loss was 30 million dollars
According to the news OpenAIin total in the first quarter of the year 5 million dollars While it could not even reach the turnover, the company’s expenses in the same period exceeded 30 million dollars. It does not seem possible for the company to recover from this situation without sufficient investment in the near future. Let us remind you that important developers of the company left due to financial difficulties and Mostaque left his job for “decentralized artificial intelligence”.
Both the controversies left over from the former CEO and Companies like GettyImages Both the lawsuits it has filed and the uncertainty the company is in may cause Stability AI to change hands. It seems unknown whether they will be able to find investors in the current competitive environment.
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