The London-founded startup has closed its UK office and moved its focus to Los Angeles, bringing its total funding to $232 million under CEO Prem Akkaraju.
Stability AI, the London-founded startup behind the Stable Diffusion image model, has raised a $76 million funding round backed by three major music companies, the company said Tuesday.
The Series B round includes new investors Sony Music Group, Universal Music Group and Warner Music Group, along with gaming company Electronic Arts. AMD Ventures and Pacific Alliance Ventures also participated.
Existing investors Coatue and Greycroft also took part, as did former Google CEO Eric Schmidt and Napster co-founder Sean Parker, who sits on Stability AI’s board alongside film director James Cameron. The company said it would use the funds for creative production and research.
Stability AI now describes itself as “the leader in purpose-built AI products for professional creatives across music, gaming and entertainment.” The startup, founded in London in 2019, has closed its London office and shifted its focus to the US, opening an office in Los Angeles.
The company said the round brings its total funding to $232 million, including two equity rounds and convertible notes raised under CEO Prem Akkaraju, who was appointed in June 2024. Akkaraju replaced founder Emad Mostaque, who left the company amid a wave of employee departures, claims of internal strife and lawsuits.
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The investment follows deals Stability AI struck with Warner and Electronic Arts to build AI models using their catalogs and intellectual property. It also follows a series of model releases earlier this year, including one capable of producing professional-grade music tracks longer than six minutes.
“Our investors set us up for long-term success because they provide not only capital, but expertise, credibility, and direct connection to artists,” Akkaraju said.
