Stability AI, maker of image generator Stable Diffusion, raises $76 million in fresh funding

Stability AI, the company behind Stable Diffusion, has pulled in $76 million in new Series B money, bringing its total fundraising to $232 million. The round was announced Tuesday, and it came with a roster that says a lot about where the company is trying to go next.

Universal Music Group, Sony Music Group, Warner Music Group, and Electronic Arts all backed the round, alongside AMD Ventures and Pacific Alliance Ventures. That is not a standard startup cap table. It looks more like a list of partners Stability needs if it wants its models to show up inside entertainment production and distribution workflows.

CEO Prem Akkaraju, who joined in 2024, cast the deal as a vote for a future where generative AI helps producers, musicians, and storytellers. The company says the cash will go into its “creative production” product suite and its professional services arm. Stability already offers AI models for music, video, and image generation, so the message here is less about a new direction than about pushing harder into the business side of the same bet.

That bet has been building for a year. Stability signed deals with Universal Music and EA in October, then with Warner Music in November, with those companies helping co-develop its tools rather than just licensing output. And the legal picture has been mixed but not disastrous: the company won most of a copyright case brought by Getty Images in the UK, while a U.S. version of that fight is still going. It was also sued in 2023 by co-founder Cyrus Hodes, who says he was tricked into selling his stake by Emad Mostaque.