- Stability AI supposedly investigates potential sales months after introducing stable audio.
- There have been growing tensions between the company and its investors, explicitly concerning CEO Emad Mostaque’s management performance and senior managers’ departure.
A few days after Ed Newton-Rex, the head of audio at Stability AI, resigned over the company’s use of copyrighted material to train generative AI models, the company supposedly investigates potential sales. The British Artificial Intelligence startup, against numerous financial challenges, needs help to stay operational.
There have been growing tensions between the company and its investors, explicitly concerning CEO Emad Mostaque’s management performance and senior managers’ departure. Coatue, which spearheaded a $1 billion funding round for the startup, has demanded that CEO Emad Mostaque step down. Concerns concerning Mostaque’s leadership, the departure of senior managers, and the startup’s unstable financial position are mentioned in the demand, expressed in a letter to management.
The possible selloff by the Stable Diffusion developer came to light in reports published by Bloomberg and other media outlets. This investigation into a sale is said to have started after New York City-based Coatue—which has supported ByteDance, Dapper Labs, and other companies in addition to owning a stake in Stability AI—voiced concerns about the company’s finances and leadership in a letter from October.
According to reports, Coatue, 24, pushed for CEO Emad Mostaque’s resignation as part of the same criticism, citing concerns about his management style and alleged connections to executive departures. Furthermore, according to The Information, representatives “from Coatue and [fellow Stability AI investor] Lightspeed have already exited Stability’s board” due to disagreements over Mostaque’s style.
However, a Sound Ventures-backed Stability AI representative, which declared an October 2022 fundraising of over $100 million, quickly praised Mostaque’s contributions to the business and denied any intention to sell.
“While several parties have expressed interest in the purchase of Stability AI, we are not trying to sell the company and are focused on releasing leading models,”
a spokesperson for Stability AI told Bloomberg.
Stable AI launched Stable Audio in September
Stability AI’s initial venture into generative audio, Dance Diffusion, demonstrated the company’s significant investment in the emerging field of AI music creation tools and its apparent keen interest in it. However, in terms of Stability’s efforts, nothing seemed to be happening in the generative audio space for almost a year following the announcement of Dance Diffusion.
Then, it showed up this year with another fantastic AI product, Stable Audio. According to Stability, Stable Audio is a tool that employs a process known as latent diffusion to produce “high-quality,” 44.1 kHz music for commercial use.
According to Stability, the underlying approximately 1.2 billion-parameter model of Audio Diffusion allows for more control over the content and duration of synthesized audio than the generative music tools released before it. It is trained on audio metadata, the durations of audio files—and start times.
“Stability AI is on a mission to unlock humanity’s potential by building foundational AI models across several content types or ‘modalities,'” Ed Newton-Rex, VP of audio for Stability AI, told TechCrunch in an email interview. “We started with Stable Diffusion and have grown to include languages, code, and music. We believe the future of generative AI is multimodality.”
Will the sale of Stable AI affect Stable Audio?
How a Stable AI sale would affect Stable Audio needs to be clarified. For now, no one understands the implication of the company’s sales on the song-generation product. The song-generation product, which debuted in mid-September, currently offers two tiers: a free one and a “professional” one that allows users to create up to 500 monthly tracks for $11.99.
Stability AI raised $101 million in 2022 and became a unicorn, attracting investors with its software’s capacity to produce eye-catching images with little to no prompting. But worries have surfaced when the business’s out-of-pocket costs—such as payroll and bills—surpassed its earnings.
The coming days will prove to determine what happens next for Stable AI. But clients and supporters of the company’s Stable Audio will hope that the next move will continue the availability of the fantastic AI product that has received delightful and impressive reviews from many.