Stability AI, the company behind the image generator Stable Diffusion, has raised $76 million in a Series B funding round. The deal brings the startup's total funding to $232 million.
The company announced the round on Tuesday. It said the money comes partly from entertainment companies that already work with Stability on content deals.
Those backers include Universal Music Group, Sony Music Group, and Warner Music Group. Gaming company Electronic Arts also took part in the round.
Two investment firms joined as well. AMD Ventures and Pacific Alliance Ventures both put money into the deal.
This is an unusual group of investors for a venture round. Many of these firms are also business partners that license Stability's technology.
Stability AI CEO Prem Akkaraju said the funding shows confidence in the company's direction. He said the goal is to help producers, musicians, and storytellers use generative AI in their work.
How Stability Plans to Use the Money
The company says it will use the new capital to expand its creative production tools. This includes its models for AI-generated music, video, and images.
Stability also plans to grow its professional services team. This side of the business helps entertainment companies build AI tools suited to their own work.
The company currently offers a range of AI models built for image, video, and music generation. These tools are aimed at studios, labels, and game developers.
Partnerships and Ongoing Legal Cases
Stability AI was founded in 2019. Over the past year, the company has signed several deals with entertainment firms.
It partnered with Universal Music last October. That same month, it also struck a deal with Electronic Arts to work on game development tools.
Stability signed another partnership with Warner Music last November. These deals let the companies help shape Stability's AI products rather than simply license finished tools.
The company has also spent time in court. Getty Images sued Stability in the United Kingdom, claiming the company used Getty's photos to train Stable Diffusion without permission.
A UK judge largely ruled in Stability's favor in that case. The court rejected a secondary copyright claim brought by Getty.
A similar lawsuit from Getty is still active in the United States. That case is working its way through the court system.
Stability also faced a separate lawsuit in 2023. Co-founder Cyrus Hodes claimed he was misled by fellow co-founder Emad Mostaque into selling his stake in the company.
The Series B round announced this week marks the company's largest funding update so far. It signals continued financial backing from the entertainment industry as Stability expands its AI tools.
