Stability AI Gets New CEO and a Bailout From Investor Group Led By Sean Parker

Stability AI, a startup that rode the boom in generative artificial intelligence to a $1 billion valuation before experiencing financial trouble and employee defections, has a new CEO. Prem Akkaraju, former CEO of visual effects company Weta Digital, will step into the role, according to a person involved in the decision.

The 51-year-old Akkaraju is part of a group of investors including former Facebook President Sean Parker that has stepped in to save Stability with a cash infusion that could result in a lower valuation for the firm, which develops products that use Stable Diffusion, an open-source AI image generator. The new funding will likely shrink the stakes of some existing investors, who have collectively contributed more than $100 million.