Stability AI, the developer of Stable Diffusion, is reportedly considering a sale due to pressure from investors.

Stability AI, the UK-based AI startup behind the image-generating AI Stable Diffusion, is reportedly considering a sale amid growing investor pressure over its financial situation.

Stability AI Explores Sale as Investor Urges CEO to Resign - Bloomberg
https://www.bloomberg.com/news/articles/2023-11-29/stability-ai-has-explored-sale-as-investor-urges-ceo-to-resign

Report: Stability AI Positioning Itself for Acquisition
https://www.pymnts.com/acquisitions/2023/report-stability-ai-positioning-itself-for-acquisition/

According to multiple sources familiar with the matter, StabilityAI has held acquisition talks with several companies since November, but none of the talks are in the early stages and no agreement has been reached, meaning there's a possibility the talks could be terminated without an acquisition taking place.

PYMNTS, an analytics firm, reported that Canadian AI company Cohere and AI marketing tool developer Jasper have received acquisition offers from Stability AI. However, Cohere has reportedly declined to participate in the acquisition talks. PYMNTS said Stability AI is considering selling itself because of pressure from investors.

Additionally, according to sources who spoke to Bloomberg, investment management firm Coatue Management has asked Stability AI's CEO, Emad Mostark, to resign in a letter to the company's management, citing the company's financial difficulties, which have been compounded by the resignations of several senior executives due to CEO Mostark's declining leadership.

Executives and engineers resign one after another at Stability AI, developer of image generation AI 'Stable Diffusion,' raising questions about CEO leadership - GIGAZINE

A Stability AI spokesperson responded, 'Several parties have expressed interest in acquiring Stability AI, but we have no intention of selling the company and are focused on releasing our core AI models.'

On November 27, 2023, CEO Mostark posted on X (formerly Twitter) that Stability AI was on track to generate $1.2 million in revenue in August 2023 and $3 million in software and services revenue in November, but the post was later deleted, according to Bloomberg.

A Stability AI spokesperson said, 'Our CEO's leadership and management team have been instrumental in Stability AI's success. Our recent investment underscores investor confidence in the stability of this fast-growing market.' The spokesperson declined to comment on Mostark's position.

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