The Company Behind Stable Diffusion Appears to Be At Risk of Going Under

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Is AI just another bubble?

The company is now looking to hire new executives who will help sales and generate some much-needed revenue.

Given the sheer amount of competition the company is facing, Stability AI's woes are a worrying sign that clear winners in the AI race are already emerging.Stability AI raised $100 million last year and has already spent a significant portion of those funds, according to the report. That means the startup's upcoming fundraising round, which would balloon the company's valuation to a lofty $4 billion, is on shaky grounds, with investors having second thoughts.

But there are deeper, structural issues the company is also grappling with. Stability AI wasn't actually the sole inventor of Stable Diffusion, which was originally created by an international team of researchers from the Ludwig-Maximilians-Universität in Munich, Germany, and New York-based company RunwayML.

Mostaque swooped in to help turn the AI model into an open-source image generator. The CEO even bet his own personal wealth to guarantee the company was able to pay for Amazon web hosting, according to

 

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