Universal, Sony, Warner, EA Back Stability AI in $76 Million Round
The Stable Diffusion developer is deepening its ties with the music and gaming industries as it expands its generative AI products.
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Stability AI has raised $76 million from some of the world’s largest entertainment companies as it deepens its ties with industries confronting the rise of generative AI.
Universal Music Group, Sony Music Group, Warner Music Group and Electronic Arts participated in the Series B round, alongside AMD Ventures and Pacific Alliance Ventures, Stability AI said on Tuesday, 25 August.
Existing investors including Coatue, Greycroft, Kadmos Capital, Sean Parker and Eric Schmidt also joined the round.
The financing brings the amount raised since Prem Akkaraju became chief executive in June 2024 to $232 million. That figure includes two equity rounds and convertible notes, according to the company.
EA, Universal and Warner are already strategic partners of Stability AI. The company is working with Universal and Warner on generative AI tools for musicians and with EA on models and workflows for game development. Sony was identified as an investor, but Stability did not announce a separate commercial partnership with the company.
Stability said the fresh capital will go toward expanding its suite of image, video and music-generation tools as well as its professional-services business.
“This funding is an affirmation of our vision where generative AI empowers every producer, musician, and storyteller,” Akkaraju said.
Akkaraju took over in 2024 after a period of management upheaval and financial strain under co-founder Emad Mostaque.
Copyright disputes remain a risk. The UK High Court rejected Getty Images’ secondary copyright claim against Stability in November but found limited trademark infringement involving Getty watermarks in outputs from some older Stable Diffusion models.
Getty’s principal claim over model training was withdrawn during the trial because of difficulties establishing that the training occurred in the UK. An appeal is pending.
Getty is pursuing a separate lawsuit in California, where several copyright and trademark claims remain before the court.
The company has also faced litigation from co-founder Cyrus Hodes, who sued Stability and fellow co-founder Mostaque in 2023 over the sale of his stake.
