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- Stability AI
Stability AI Revenue, Valuation, Funding & Investors
Stability AI is valued at $1B as of October 2022.
Last Stability AI valuation
$1B
Seed · Oct 2022
Last Stability AI funding round
$76M
Series B · Aug 2026
Stability AI revenue
$4M
Seed · Oct 2022
Key investors in Stability AI
Coatue
Sound Ventures
Lightspeed Venture Partners
Greycroft
Eric Schmidt
Kadmos Capital
About Stability AI
Stability AI is a London-based developer of open-source generative AI models, including Stable Diffusion for text-to-image synthesis and Stable Video Diffusion for motion generation. The company releases models under permissive licenses, enabling applications in advertising and film production worldwide. Stability AI collaborates with partners like AMD and NVIDIA for optimized inference on hardware, supporting enterprise deployments through its API serving millions of daily generations since Stable Diffusion 1.5 in 2022.
Founded
2019
HQ
Website
Status
Privately held
Customer focus
B2B
Revenue model
Licensing, Usage-based
Revenue
$4M (Oct 2022)
Valuation
$1B (Oct 2022)
Stability AI Valuation
Stability AI is currently valued at $1B, based on its seed round in October 2022.
The $101M round was led by Coatue, Lightspeed Venture Partners and O'Shaughnessy Asset Management, with participation from Samsung NEXT’s Q Fund, Fourth Revolution Capital, Mei Z. and Kadmos Capital.
Stability AI valuation by funding round
| Date | Stage | Valuation | Revenue Multiple |
|---|---|---|---|
| Oct 2022 | Seed | $1B | 250.0x |
Stability AI Revenue
Stability AI's latest recorded revenue is $4M, as of its seed round in October 2022.
Stability AI revenue by funding round
| Date | Revenue * | Valuation | Revenue Multiple | Stage |
|---|---|---|---|---|
| Oct 2022 | $4M | $1B | 250.0x | Seed |
* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.
Stability AI Funding History
Stability AI has raised a total of $332M across 5 funding rounds.
Stability AI's first fundraising round was a $101M seed round in October 2022. The most recent completed round was a $76M Series B in August 2026.
Stability AI funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Aug 2026 | Series B | Sound Ventures; Sean Parker; Sony Music Entertainment; Universal Music; Greycroft; Eric Schmidt; AMD Ventures; Warner Music Group; Pacific Alliance Ventures; Coatue; Kadmos Capital; MANTIS Venture Capital | $76M | - | Stability AI announced a Series B financing of $76 million on August 25, 2026, with Coatue participating again alongside Greycroft, Kadmos Capital, Sean Parker, and Eric Schmidt, while new investors included Electronic Arts, Sony Music Group, Universal Music Group, Warner Music Group, AMD Ventures, and Pacific Alliance Ventures. The round was framed as an expansion of Stability AI’s push into professional creative AI for music, gaming, and entertainment under CEO Prem Akkaraju, and the company said the new capital brought total funding to $232 million across equity rounds and convertible notes. Coatue’s Thomas Laffont also joined the board, underscoring the company’s strategic shift toward verticalized creative infrastructure rather than a general frontier-model race. Stability AI described itself as a leader in purpose-built AI products for professional creatives across music, gaming, and entertainment. The company’s investor base now spans major entertainment and technology backers, reflecting a strategy centered on commercial creative tooling and industry partnerships. |
| Jun 2024 | Undisclosed stage | Sound Ventures; Sean Parker; Firestreak Ventures; Greycroft; Eric Schmidt; Prem K. Akkaraju; Lightspeed Venture Partners; Robert Nelsen; Watertower Ventures; Coatue; O'Shaughnessy Ventures | $80M | - | Stability AI, developer of open-source AI models like Stable Diffusion for image, audio, video, and code generation, closed an initial funding round around June 25, 2024, from investors including Coatue Management, Greycroft, Lightspeed Venture Partners, Sound Ventures, Eric Schmidt, Sean Parker, Prem K. Akkaraju, Robert Nelsen, O'Shaughnessy Ventures, Firestreak Ventures, and Watertower Ventures, reportedly worth $50-80 million according to sources like WSJ, with efforts to close an additional $30 million. The round came amid financial distress, with the company appointing Prem Akkaraju as CEO and Sean Parker as executive chairman following founder Emad Mostaque's March 2024 departure and executive exits. Investors also facilitated supplier forgiveness of over $100 million in debt and $300 million in future obligations, primarily cloud computing bills. Stability AI had reached unicorn status with a $1 billion valuation in 2022 after raising $101 million, but struggled with cash flow, reportedly down to $4 million in the bank by October 2023 and burning $8 million monthly on operations. Projections for 2023 showed expected revenue of $11 million against $99 million in cloud compute costs and $53-54 million in wages and operating expenses, leading to significant losses including over $30 million in Q1 2024. The company financed prior work through earlier rounds totaling around $181 million but faced challenges securing funding due to lack of a clear business model. The new capital aims to stabilize operations, accelerate product development for creative professionals, developers, and enterprise customers with custom AI models, and capitalize on traction like over 150 million Stable Diffusion downloads and Stable Diffusion 3 topping charts with 2 million downloads shortly after launch. Stability AI positions itself as a leader in open-source generative AI, competing with players like OpenAI's DALL-E, while addressing overwhelming corporate demand amid high-profile layoffs and management changes. |
| Nov 2023 | Undisclosed stage | Intel (lead) | $50M | - | Stability AI, known for its open-source Stable Diffusion text-to-image model, received just under $50 million from Intel in October 2023 as a convertible note, following Intel naming Stability AI as the anchor customer for its AI supercomputer using Xeon and Gaudi2 processors. This strategic investment came amid challenges, including high burn rate of about $8 million monthly on bills and payroll, far exceeding revenue at the time. Revenue was low relative to expenses: $1.2 million in August 2023, with projections to reach $3 million in November 2023 from software and services, per a now-deleted post by CEO Emad Mostaque. The investment was partially tied to Stability AI adopting Intel processors, though the company stated no hardware contingencies on capital received. Facing internal turmoil including senior departures and investor pressure (e.g., Coatue's late October letter post-investment urging CEO changes), Stability AI explored sales to firms like Cohere and Jasper while pursuing strategic funding over traditional VC. Later rounds included a June 2024 seed extension of $80 million from Inflection Ventures and Sound Ventures at maintained $1 billion valuation, but no details tie directly to the Intel round. Stability AI's models like Stable Diffusion saw massive adoption with over 150 million downloads, leading open-source rankings on Hugging Face, and enterprise interest from hundreds of major businesses, underscoring its role in generative AI despite operational struggles. |
| May 2023 | Undisclosed stage | Sound Ventures | $25M | - | - |
| Oct 2022 | Seed | Coatue (lead); Lightspeed Venture Partners (lead); O'Shaughnessy Asset Management (lead); Samsung NEXT’s Q Fund; Fourth Revolution Capital; Mei Z.; Kadmos Capital | $101M | $1B | Stability AI, headquartered in London and founded in 2019, develops open-source AI models including Stable Diffusion, a text-to-image generator launched in August 2022 that has been downloaded by over 200,000 developers and powered its consumer product DreamStudio, which grew to over 1.5 million users creating more than 170 million images. The company announced a $101 million oversubscribed funding round on October 17, 2022, led by Coatue, Lightspeed Venture Partners, and O'Shaughnessy Ventures LLC (also listed as O'Shaughnessy Asset Management), with participation from investors including Fourth Revolution Capital, Kadmos Capital, Mei Z., and Samsung NEXT’s Q Fund. This seed/Series A round valued Stability AI at a post-money $1 billion according to a Bloomberg source cited in contemporaneous reporting. Funds were allocated to accelerate development of open AI models for image, language, audio, video, and 3D applications, scale custom Stable Diffusion deployments, invest in supercomputing with over 4,000 Nvidia A100 GPUs, and expand headcount from around 100 to 300 employees. Stability AI planned to monetize via private model training for customers, enterprise infrastructure, and its DreamStudio API/platform, amid high operational costs exceeding $50 million for cloud and compute. The round positioned Stability AI amid surging demand for generative AI, with Stable Diffusion achieving over 10 million daily users across channels. |
Who has invested in Stability AI?
23 investors have backed Stability AI across its funding rounds, including Coatue, Sound Ventures, Lightspeed Venture Partners, Greycroft, Eric Schmidt and Kadmos Capital.
Lead investors include Intel, Coatue, Lightspeed Venture Partners and O'Shaughnessy Asset Management.
Stability AI Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 3 | Participant | May 2023 | ||
| 3 | Lead | Oct 2022 | ||
| 2 | Participant | Jun 2024 | ||
| 2 | Participant | Jun 2024 | ||
| 2 | Participant | Jun 2024 | ||
| 2 | Lead | Oct 2022 | ||
| 2 | Participant | Oct 2022 | ||
| 1 | Participant | Oct 2022 | ||
| 1 | Participant | Oct 2022 | ||
| 1 | Participant | Jun 2024 | ||
| 1 | Lead | Oct 2022 | ||
| 1 | Participant | Oct 2022 | ||
| 1 | Participant | Aug 2026 | ||
This data is available for Pro users. Sign up to see all 23 Stability AI investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
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Start Free TrialAcquisitions by Stability AI
Stability AI has acquired 2 companies to date.
Last acquisition by Stability AI was on March 7th 2023. Stability AI acquired Init ML for undisclosed valuation.
Latest Acquisitions by Stability AI
| Description | Init ML is a consultancy that deploys machine learning models from research prototypes into production environments. Services cover model training, optimization, and integration for industries like finance and healthcare. San Francisco-based, the firm bridges academic advancements with scalable infrastructure using frameworks such as TensorFlow and PyTorch. | ClipDrop is a Stability AI-developed mobile app converting everyday photos into e-commerce-ready product visuals. It removes backgrounds, relights images, and generates studio shots for online stores. Available on iOS and Android, the app serves merchants listing items on platforms like Shopify and Amazon. |
| HQ Country | ||
| HQ City | Paris | Paris |
| Deal Date | 7 Mar 2023 | 7 Mar 2023 |
| Valuation | undisclosed | undisclosed |
| EV/Revenue | ||
| EV/EBITDA | ||
This data is available for Pro users. Sign up to see all Stability AI acquisitions and their M&A valuation multiples. Start Free Trial | ||
Stability AI Competitors
Stability AI competitors include listed companies like Appier Group and Rackspace, and private ones like AA-I Technologies, Adept AI, Aibee and Amperity.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | - | - | $1B | - | ||
| Private | - | - | $1B | - | ||
| Private | - | - | $1B | - | ||
| Private | $70M | - | $1B | 14.3x | ||
| Publicly listed | $281M | $44M | $1B | 2.9x | ||
| Publicly listed | $2.7B | $244M | $997M | 1.6x |
Stability AI Public Comps
Stability AI is still privately-owned, but its public comps include Appier Group, Rackspace, Rezolve AI, Beijing CTJ Info Tech, Fractal Analytics, Reconova Technologies, PKSHA Technology, PCITECH, ExaWizards and Beijing Hanyi Innovation.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $281M | $44M | 3.4x | 2.9x | 21.6x | 15.7x | |||
| $2.7B | $244M | 1.5x | 1.6x | 17.1x | 15.0x | |||
| $47M | ($109M) | 23.3x | 4.0x | (10.0x) | (19.3x) | |||
| $123M | $13M | 5.3x | 4.9x | 51.3x | 34.6x | |||
| $344M | $50M | 3.7x | 3.4x | 25.8x | 21.0x | |||
| $66M | ($8M) | 10.0x | - | (82.0x) | - | |||
| $140M | $47M | 4.1x | 2.4x | 12.2x | 10.7x | |||
| $1.5B | $53M | 0.8x | 0.9x | 24.1x | - | |||
This data is available for Pro users. Sign up to see all Stability AI competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Stability AI
| When was Stability AI founded? | Stability AI was founded in 2019. |
| Where is Stability AI headquartered? | Stability AI is headquartered in London, United Kingdom. |
| Is Stability AI publicly listed? | No, Stability AI is a private, VC-backed company. |
| What is Stability AI's valuation? | Stability AI was last valued at $1B in its seed round in October 2022. |
| How much funding has Stability AI raised? | Stability AI has raised $332M across 5 funding rounds. |
| What was Stability AI's last funding round? | Stability AI's last funding round was a $76M Series B in August 2026. |
| Who are Stability AI's investors? | Stability AI's investors include Sound Ventures, Coatue, Sean Parker, Greycroft, Eric Schmidt, Lightspeed Venture Partners, Kadmos Capital, Samsung NEXT’s Q Fund, Fourth Revolution Capital, Firestreak Ventures and 13 others. |
| What is Stability AI's revenue? | Stability AI's latest recorded revenue is $4M (October 2022). |
| Which companies are comparable to Stability AI? | Companies comparable to Stability AI include AA-I Technologies, Adept AI, Aibee, Amperity, Appier Group and Rackspace. |
| How many companies has Stability AI acquired? | Stability AI has acquired 2 companies, including Init ML and ClipDrop. |
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