Stability AI Raises $76M, Cites Court Wins in Getty Case

Stability AI, maker of the Stable Diffusion image generation model, has raised $76 million in Series B funding, according to a report by TechCrunch. The round brings the company’s total fundraising to $232 million.

TechCrunch reported that the funding came partly from entertainment industry organizations including Universal Music Group, Sony Music Group, Warner Music Group, and Electronic Arts, along with investment firms AMD Ventures and Pacific Alliance Ventures.

Stability AI CEO Prem Akkaraju, who joined the company in 2024, described the funding as an affirmation of the company’s vision for generative AI in creative industries, per TechCrunch. The company said it plans to use the capital to expand its creative production product suite and professional services arm, which currently offers AI models for music, video, and image generation.

TechCrunch noted that Stability has spent the past year signing partnerships with entertainment companies, including deals with Universal Music and EA last October and with Warner Music in November, that involve co-developing Stability’s AI tools rather than simple licensing arrangements.

The report also highlighted Stability’s legal track record. The company largely prevailed in a copyright lawsuit brought by Getty Images in the United Kingdom, which had accused Stability of infringing intellectual property rights by using Getty’s images to train its image generation model. A UK judge ruled largely in Stability’s favor, though a similar lawsuit from Getty in the United States remains ongoing, TechCrunch reported.

Separately, TechCrunch noted that Stability was sued in 2023 by co-founder Cyrus Hodes, who alleged he was misled by fellow co-founder Emad Mostaque into selling his stake in the company.

Based on reporting by techcrunch.com.