Stability AI was founded in 2019 and is most recognised for its image-generating tool, Stable Diffusion. Credit: rafapress/Shutterstock.

Generative artificial intelligence (AI) company Stability AI has announced a successful fundraising round and the appointment of Prem Akkaraju as its new CEO. 

The UK startup did not disclose the exact amount of the funding, but according to sources cited by Reuters, the company raised approximately $80m (£63.2m).  

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Stability AI, founded in 2019, gained recognition for its image-generating tool, Stable Diffusion. It has also launched AI models to create audio and video with text cues. 

The investment came from Coatue Management, Sound Ventures, Greycroft, Lightspeed Venture Partners and O’Shaughnessy Ventures.  

Technology executives such as Akkaraju, Sean Parker, Eric Schmidt and Robert Nelsen also participated in the round.  

Stability AI plans to use the investment to support growth and offer generative AI solutions for both consumers and enterprise customers.  

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Akkaraju, a former CEO of Weta Digital, will take over as CEO of Stability AI with immediate effect. 

Parker, the former president of Facebook, has been named executive board chairman of Stability AI. 

Alongside Akkaraju and Parker; Colin Bryant, COO and general partner of Coatue Management, and co-founder and managing partner of Greycroft Dana Settle are among the other board members. 

Akkaraju said: “Stability AI is the backbone of the visual AI ecosystem. The Company’s world-class team, breakthrough models and unique developer network attracted me to take on the CEO role.  

“We will continue to release the most cutting-edge open models for the community, while meeting the overwhelming demand for AI solutions from large-scale corporations. Additionally, Stability AI is now in an ideal position to spearhead the real convergence of generative AI and studio content.” 

The announcement comes after the cash-strapped generative AI business had difficulties exacerbated by the departure of CEO and founder Emad Mostaque in March 2024.