This development comes after Stability AI's founder and former CEO, Emad Mostaque, resigned in March to focus on decentralized AI. His departure followed a report in April that the company had exhausted its funds to pay for its rented cloud GPUs. Despite raising millions at a $1 billion valuation last year, the company has faced financial difficulties.
Key takeaways:
- British startup Stability AI has appointed Prem Akkaraju, former CEO of Weta Digital, as its new CEO.
- A group of investors including former Facebook President Sean Parker has stepped in to save Stability AI with a cash infusion that could result in a lower valuation for the firm.
- The new funding will likely decrease the stakes of some existing investors, who have collectively contributed more than $100 million.
- Stability AI's founder and former CEO, Emad Mostaque, stepped down from the role to pursue decentralized AI, following a report that the company ran out of cash to pay its bills for its rented cloud GPUs.