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385 Stability AI, Facing Cash Crunch, Discusses Sale

The Information
Stephanie Palazzolo @ The Information 3 place · 05/15/2024 19:51 EDT

Stability AI, which has emerged as a poster child for investors’ rush to back unproven artificial intelligence startups, has talked to at least one potential buyer in recent weeks about a sale as its faces a cash crunch, according to a person involved in the conversations.

The four-year-old startup raised at least $101 million from marquee investors including Coatue Management and Lightspeed Venture Partners. It fetched a $1 billion valuation in 2022 on early fanfare for Stable Diffusion, an open-source AI

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