Stability AI in Talks to Raise Money From Group Including Sean Parker

A group of investors including Sean Parker, Facebook’s first president, has discussed making an investment in Stability AI, a startup developing products that run on open-source image generator Stable Diffusion, according to a person directly involved in deal conversations. The deal would represent a lifeline for Stability, which has been talking to potential buyers as it faces a cash crunch and unpaid cloud computing bills.

The investment group also includes Prem Akkaraju, the former CEO of visual effects company Weta Digital, which Unity Technologies acquired in 2021. Stability sells memberships that allow developers to use image-generating models for commercial purposes, such as to create digital ads. The investment could give Stability stronger ties to the media and entertainment companies that could purchase its image and video-generating software.