Crisis news: Stability AI is on the verge of sale
Date: 2024-05-17 Author: Oliver Abernathy Categories: IN WORLD
Startup Stability AI, known for its AI image generator Stable Diffusion, is actively negotiating the sale of the company with at least one potential buyer, media reported. The reason for this step was an acute lack of financial resources.
Financial position
According to The Information, in the first quarter of 2024, Stability AI earned less than $5 million in profit and losses exceeding $30 million. The startup also faces a backlog of about $100 million in unpaid bills to cloud computing providers and other companies.
Negotiations and changes in leadership
Negotiations on the sale of the startup began after a number of structural changes in the company. This includes staff reductions and the departure of founder Emad Mostak as CEO. The decision to sell became inevitable in the context of recent financial difficulties, sources said.
Outflow of key figures
Recently, Ilya Sutskever, co-founder of OpenAI, left the company. This exodus of key figures could have affected the overall dynamics of the startup and made the situation worse.
Startup Stability AI faces significant challenges, but sale talks represent a potential opportunity for its future. The question of the remaining path remains to be resolved in a rapidly changing market and competitive environment.
