Posted 4/3/2024, 12:16:00 AM
Stability AI Faces Financial Troubles and Lawsuits After Rapid Growth
- Stability AI spent massive amounts on AWS, GCP, and GPU clouds ($99M/year) to train models like Stable Diffusion
- But made little revenue ($11M projected for 2023) and struggled to pay its cloud bills
- Former CEO Emad Mostaque failed to execute a viable business plan or raise enough funding
- Mostaque resigned in January 2023 citing AI power concentration concerns
- Stability faces financial uncertainty and multiple copyright lawsuits over training data
