According to Bloomberg, UK-based AI image developer Stability AI may be searching for a buyer following calls for CEO Emad Mostaque to step down and company VPs leaving due to the firm's use of copyrighted content. Stability AI is responsible for the popular Stable Diffusion generative artificial intelligence model, which recently added video features. Bloomberg reported that American technology investment company Coatue Management sent a letter to Stability AI in October, inquiring about top executives' pay, including Mostaque, and questioning his leadership.
No one has yet accepted Stability's ownership invitation, but AI marketing tool developer Jasper and Canadian AI developer Cohere have emerged as potential buyers, according to data analytics site PYMNTS. Stability AI has not responded to Decrypt's request for comment. Stable Diffusion, launched in August 2022, uses generative AI to create images based on user prompts and was valued at $1 billion by Coatue.
Stability AI has faced controversy, as its tools have been used to create AI-generated deepfakes of world leaders and events. In September, Stability and Cohere signed the Biden Administration's pledge to develop AI safely, and Stability participated in the UK Safety Summit in November. However, the company's stance on fair use led to the resignation of Stability's VP of Audio, Ed Newton-Rex, who disagreed with the company's justification for training AI models with copyrighted material. Newton-Rex told Decrypt that his decision was meant to highlight an industry-wide issue and that he objected to the cross-industry position taken by many generative AI companies.